Rayonier Advanced Materials to suspend Temiscaming High Purity Cellulose Plant

The company states: “Rayonier Advanced Materials is announcing that, effective July 2, 2024, it will suspend operations at its Temiscaming High Purity Cellulose 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.”