Resolute Forest Products provided an update on the impact of the COVID-19 situation to its business. The company expects to continue to operate in all of its business segments – pulp, tissue, wood products and paper – in Canada and the United States. But the company expects to take certain temporary steps to reduce its operational footprint to demand levels consistent with essential needs for the duration of the crisis. Source: Timberbiz
While certain government authorities in Canada and the United States have ordered the closure of all non-essential business operations in regions where Resolute operates, they have also recognized the importance of the forest products sector in the fight against the coronavirus pandemic:
- tissue products to fill empty shelves;
- pulp to produce tissue, air filters, paper gowns, and other medical and personal care supplies;
- paper to keep people informed of developments and advisories; and
- wood products to support the demand for building and essential infrastructure.
The company will adjust capacity dynamically based on the conditions and rapid evolution of the situation, but most of the capacity reduction is expected to come from the wood products and paper segments.
The company will continue to monitor the situation and to work closely with its customers to provide the high-quality products and strong support, it will also continue to closely monitor the supply of incoming raw materials and work in collaboration with its numerous suppliers to secure the stability of the supply chain.
“These are certainly unprecedented times,” said Yves Laflamme, president and chief executive officer.
“The COVID-19 situation is evolving very quickly, and there is a sense of stress and concern weighing on everyone. I want to especially thank our employees for their support: Your hard work and dedication are particularly appreciated given the uncertainty the economy is currently facing.”