JACKSONVILLE, Fla. , April 29,
2024 /CNW/ - Rayonier Advanced Materials Inc. (NYSE:
RYAM) is announcing that, effective July 2,
2024, it will suspend operations at its Temiscaming High
Purity Cellulose (HPC) plant for an indefinite period. As
previously communicated, the Company remains committed to operating
its assets profitably.
Given current market conditions and high capital and fixed costs
associated with the HPC plant, this decision will help mitigate the
plant's ongoing operating losses and improve the Company's
consolidated free cash flow. Today's announcement is aligned with
the Company's focus on improving its balance sheet, leverage
position and overall financial performance toward execution of its
long-term growth strategy.
The suspension, which will be carried out in a safe and
environmentally sound manner, will result in a reduction of RYAM's
annual global HPC production. The Temiscaming HPC facility has
an annual production capacity of approximately 150,000 metric tons,
with roughly 30 percent historically dedicated to specialty
cellulose materials. The Company will be working directly with its
customers to support their specialty cellulose needs in both the
short- and long-term. Today's announcement will result in
approximately 275 layoffs.
"Persistent market weakness, uncertain availability of
affordable wood fiber, and high capital and fixed costs have posed
significant challenges for the Temiscaming HPC plant," said De Lyle
Bloomquist, President and Chief Executive Officer. "This decision,
which we do not take lightly, is made only after a rigorous
strategic review in which multiple alternatives were thoroughly
explored. We are mindful of the impact this will have on affected
employees and will take appropriate measures to assist these
employees in keeping with the collective agreement, RYAM values and
applicable law."
This decision does not affect RYAM's paperboard and high-yield
pulp plants located adjacent to the Temiscaming HPC plant. These
two plants, which are part of an ongoing sales process announced
last October, remain competitive and will continue to operate at
full capacity.
About RYAM
RYAM is a global leader of cellulose-based technologies,
including high purity cellulose specialties, a natural polymer
commonly used in the production of filters, food, pharmaceuticals,
and other industrial applications. The Company also manufactures
products for paper and packaging markets. With manufacturing
operations in the U.S., Canada and France, RYAM generated
$1.6 billion of revenue in
2023.
More information is available at www.RYAM.com.
SOURCE RYAM