Over 1000 with temporary layoffs at Resolute because of the pandemic
The canadian Press
MONTREAL — The pandemic of COVID-19 has resulted in more than 1,000 layoffs temporary — primarily in Quebec — chez Resolute forest Products and some leave forced may be extended if demand punishment to resume in certain divisions because of the economic turmoil. In addition to the headquarters, located in Montreal, the axe is mainly falling in the sectors of wood products, and newsprint and specialty, explained Thursday, the president and chief executive officer of the company, Yves Laflamme, during a telephone interview on the sidelines of the unveiling of the results of the first quarter.
“The big question is to know how many will be able to come back, if it is asked. You can’t run the paper mills to half. We closed a paper machine at Amos two weeks ago. We have extended [the closure] of a month.”
The 131 workers of the factory located on Main street in Gatineau are not affected by these new cuts, claims the company.
“The Gatineau plant is spared for the moment. We continue to monitor the situation and the markets. We will see how they will behave,” says the senior director, public Affairs and government relations at Resolute forest Products, Karl Blackburn.
This in the areas of lumber, market pulp, newsprint and tissue paper — toilet paper and paper towels — Fixed some 7500 employees in Canada and the United States. The vast majority of workers are in Quebec.
During the three-month period ended march 31, the company posted a net loss of US $1 million, or 1 U.S. cents per share, whereas it had earned a net profit of $42 million US, or 45 cents US per share, a year ago. Their revenues have declined 13 %, to 689 million US$.
The results have been positive in the areas of forest products, paper tissue, and paper for special purposes, but the divisions of newsprint and market pulp have posted operating losses.
In the medium term, Mr. Laflamme is expected that the coming months will be “difficult for the timber,” since housing starts may not be at the rendezvous, as well as for newsprint paper and printing, since the weakness of demand is likely to persist.
With respect to the newsprint, the average sales price of per metric tonne declined to US $36 while the volumes shipped decreased by 11 000 tons.
“The newspaper, we were used to a decrease in annual [volume] 20 %, but here it is speeding up, pointed out the pattern Resolved. With the shops that were closed, the demand for paper for the printing of circulars has also decreased. One wonders when all this will end, but we think that it will not be in the short term.”
With the market pulp, newsprint generates the main part of the revenues of the company, which focuses on the future of its seven factories in this sector. Due to a decrease in global demand, the volumes shipped were down 13 % or 192 000 tonnes, by 2019.
The portrait, however, is best on the side of the tissue paper sector — a sector on which implementation is Resolved to diversify — so that its three us plants operate at full regime, was explained by Mr. Laflamme. The strong demand for products such as toilet paper has allowed the company to do business with new customers.
“However, there is nothing certain, said the boss of Resolved. Is it that the demand will [persist]? Is it that people have bought a lot [of toilet paper at the beginning of the pandemic] to put it in their basement?”
Thursday afternoon on the Toronto stock Exchange, the company’s share was quoted at 3.33 $, up 2 ¢.