Resolute Forest idles operations, lays off 350 workers at Calhoun, Tennessee, mill

Staff photo by John Rawlston/Chattanooga Times Free Press - Aug 19, 2014. A portion of the Resolute Forest Products plant in Calhoun, Tenn., is photographed after a groundbreaking ceremony for a new construction project in 2014.

Resolute Forest Products Inc. announced Thursday it will idle pulp and paper operations at its Calhoun, Tennessee, mill and lay off 350 workers.

The Canada-based company said the move is designed to cut ongoing losses at the Calhoun mill, which despite the strong market for its products still lost $62 million over the past year.

Resolute gave workers the required 60-day notice on Thursday under the federal Worker Adjustment and Retraining Notification Act of 1988, and the company said it will phase out production of its pulp products and unfinished freesheet paper over the next couple of months. Resolute will keep its tissue production in Calhoun and retain about 195 employees while it suspends the pulp and paper manufacturing process.

"We have taken the very difficult decision to indefinitely idle pulp and paper operations at Calhoun knowing how hard this is for the affected employees and their families," Remi G.