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Major layoffs announced at Temiscaming RYAM plant

'Persistent market weakness, uncertain availability of affordable wood fiber, and high capital and fixed costs have posed significant challenges for the Temiscaming HPC plant'
tembec plant turl 2017
The RYAM plant in Temiscaming Quebec. File photo by Jeff Turl.

TEMISCAMING - Rayonier Advanced Materials Inc. announced 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.

The announcement means the 275 people are being laid off.

"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," a RYAM stated in a release. 

"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 the company says will be carried out in a safe and environmentally sound manner, will reduce RYAM’s annual global HPC production. The Temiscaming HPC facility has an annual production capacity of approximately 150,000 metric tonnes, with roughly 30 per cent 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. 

“Persistent market weakness, uncertain availability of affordable wood fibre, 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.

In November of 2018 RYAM completed the acquisition of TEMBEC and at the time stated they would continue to operate all Canadian sites and maintain Canadian headquarters in Montreal. 


Chris Dawson

About the Author: Chris Dawson

Chris Dawson has been with BayToday.ca since 2004. He has provided up-to-the-minute sports coverage and has become a key member of the BayToday news team.
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