Resolute's decision to reduce newsprint capacity is a result of the ongoing weakness in the global newsprint business, exacerbated by fiber-related issues, including both availability and costs, as well as transportation challenges. In Quebec, power costs played a role in these decisions, as well as the spruce budworm infestation.

"Market conditions have had a major impact on our newsprint operations in both Ontario and Quebec, and the cost position of these operations has made them vulnerable to the structural decline in newsprint," said Richard Garneau, president and chief executive officer. As another issue, Garneau pointed to ill-founded attacks of environmental activist groups.

The Iroquois Falls mill employs approximately 180 people and has an annual production capacity of 210,000 t of newsprint. The closures at Baie-Comeau and Clermont will result in the loss of approximately 120 positions and the permanent removal of approximately 255,000 t of newsprint capacity.