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Fibrek to idle Saint-Felicien mill for 12 days

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Kraft pulp producer Fibrek (TSE:FBK) reported Friday it would idle the Saint-Felicien mill for 12-days to help control inventory.

The move, which takes effect June 23, will dampen production by roughly 12,000 tonnes of northern bleached softwood kraft pulp, the company said. Saint-Felicien has an annual capacity of 375,000 tonnes.

Fibrek’s mill is located in the Lac Saint-Jean region about 450 kilometres north of Montreal. The mill uses high-quality fibre from a black spruce forest in the area and has access to rail, truck and ocean transport.

The Saint-Felicien mill supplies pulp to various sectors of the paper industry, for use in products such as lightweight coated papers, groundwood specialties, tissue grades, supercalendered grades, high-quality woodfree coated grades and uncoated papers.

In April, Mercer International (TSE:MRI) withdrew from its lengthy battle to acquire Fibrek after nearly three months of legal setbacks.

The exit cleared the way for Resolute Forest Products (NYSE:RFP), formerly AbitibiBowater, whose $1 per share offer valued Fibrek at $130 million.

Fibrek was unable to acquire at least 50.1 percent of Fibrek's outstanding shares but walked away with an $8.5 million break fee.

Mercer was set to exit after Canada's top court dismissed its appeal against a lower court ruling blocking a key term of its deal with Fibrek. Mercer's offer had the support of Fibrek management.

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TSX:FBK
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