Twin Rivers Paper Company Limited announced today that it will invest approximately $12 million at its Madawaska facility as part of a strategic realignment to focus on growth-oriented market segments and maximize productivity. “Our industry has undergone a great deal of change in the past decade, and we must continue to innovate and position Twin Rivers for the future,” said Chief Operating Officer John Reichert. “As part of our strategic repositioning, we have reviewed our papermaking assets and have initiated a substantial upgrade to the largest machine in the system, PM8, which will be completed in 2017. Additionally, this repositioning will result in the permanent closure of PM3 at the end of July, improving productivity across our operations.” Twin Rivers plans to invest approximately $12 million in PM8 to dramatically enhance the machine’s capabilities and broaden the markets served by the largest asset in the Twin Rivers paper mill system. The rebuild will establish PM8 as one of the largest producers of lightweight technical packaging and label specialties in North America, ideally positioned to support strategic growth initiatives while strengthening the company’s industry-leading lineup of hybrid and freesheet lightweight publishing grades. The machine to be shut down, PM3, is one of the mill’s higher-cost machines – an older, slower and smaller machine that produces a variety of coated and uncoated grades.
Earlier, in September 2019, UPM announced the intention to sell its Chapelle newsprint mill in Grand-Couronne, France. It was communicated at the same time, that a process for the potential closure of the mill would be opened in case no credible offer would be received until mid-January 2020.
We have started the sales process in September and have been in continuous and substantial discussions with interested parties. While these discussions are still ongoing, we have not received binding offers by potential buyers of the mill to date.
Consequently, we informed employee representatives today of our intention to start the employee consultation processes for the potential closure of the site. These consultations are estimated to be concluded by end of Q2 2020 and will be conducted according to French legislation.
We will continue the sales process throughout the consultation process. We remain committed to selling the mill if we receive a suitable offer.
The mill currently employs 236 people with an annual production capacity of 240.000 tonnes of newsprint paper.