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Resolute Forest Products

Topic: Company

 From HandWiki - Reading time: 8 min
Short description: Pulp and paper company
Resolute Forest Products Inc.
TypePublic
TSX: RFP
NYSE: RFP
ISIN[https://handwiki.org/wiki/index.php?title=Toollabs:isin/&language=en&isin=US76117W1099 US76117W1099]
IndustryPulp and Paper, Tissue, Wood Products
Founded2007 (Abitibi-Consolidated and Bowater merger)
HeadquartersMontreal, Quebec
Canada
Area served
Worldwide
Key people
Duncan K. Davies[1]
(Chairman)
Remi G. Lalonde[2] CEO
ProductsMarket pulp, Paper, Tissue, and Wood Products[3]
RevenueDecrease United States dollar 2.8 billion (2020)[4]
Decrease United States dollar 99 million (2020)[4]
Decrease United States dollar 10 million (2020)[4]
Total assetsDecrease United States dollar 3.73 billion (2020)[4]
Total equityDecrease United States dollar 1.081 billion (2020[4]
Number of employees
7,100 (2020)[4]
Websitewww.resolutefp.com

Resolute Forest Products (French: Produits forestiers Résolu), formerly known as AbitibiBowater Inc., is a Canada-headquartered pulp and paper company.[5][6] Headquartered in Montreal, Quebec, Resolute was formed in 2007 by the merger of Bowater and Abitibi-Consolidated.[7] At the time, AbitibiBowater was the third largest pulp and paper company in North America, and the eighth largest in the world. On 1 July 2012, the company name changed to Resolute Forest Products.[8][9]

History

On 29 January 2007, Bowater Inc and Abitibi-Consolidated announced they would be merging to create AbitibiBowater.[7] The merger created the third largest pulp and paper company in North America, and the eighth largest in the world. On 16 April 2009 the company filed for bankruptcy protection in the United States and similar protection under the Companies' Creditors Arrangement Act in Canada, eventually reporting debt of about US$6 billion.[10] The company won court approval for an injection of $206 million to get it through its financial restructuring in April 2009[11] and emerged from creditor protection on 9 December 2010.[12] AbitibiBowater changed its operating name to Resolute Forest Products on 1 July 2012.[8][9]

Predecessor companies

The following are the principal predecessor companies of Resolute:[13]

Abitibi Power and Paper Company (1914)

 
 

Price Brothers Limited (1820)

 
 
Abitibi-Price (1979)[a 1]
 

Consolidated Paper Corporation (1932)

 
 

Bathurst Power and Paper Company (1915)

 
 
 
 
Consolidated‑Bathurst (1966)
subsidiary of Power Corporation[a 2]
Abitibi‑Consolidated (1997)
 

Donohue Inc. (1920)[a 3]

 
 

QUNO (1913)[a 4]

 
 
acquisition of QUNO (1995)
 
acquisition of Donohue (2000)
 

Bowater (1910)[a 5]

 
 

Great Lakes Paper (1924)[a 6]

 
 

Canadian International Paper Company (1919)[a 7]

 
 
CP Forest Products (1988)
divested as Avenor (1993)
acquisition of Avenor (1998)
 
AbitibiBowater (2007)
name changed to Resolute (2012)
  1. ↑ date of name change; Price acquired in 1974
  2. ↑ sold to Stone Container Corporation and renamed Stone-Consolidated (1989)
  3. ↑ originally named Murray River Power and Pulp Company; name changed in 1922
  4. ↑ originally named Ontario Paper Company; founded by Robert R. McCormick, proprietor of the Chicago Tribune
  5. ↑ North American assets of Bowater plc; spun off in 1984
  6. ↑ acquired by Canadian Pacific Limited in 1974
  7. ↑ formed as a subsidiary of International Paper; spun off in 1982, becoming CIP

Operations

Resolute Forest Products manufacturing facilities in 2019 (by location)[a 1]
Country Pulp, tissue and paper Sawmills Remanufactured wood Engineered wood[a 2] Wood pellets
Canada
  • Alma, Quebec
  • Amos, Quebec
  • Baie-Comeau, Quebec
  • Clermont, Quebec
  • Dolbeau, Quebec
  • Gatineau, Quebec
  • Kénogami, Quebec
  • Saint-Félicien, Quebec
  • Thunder Bay, Ontario
  • Atikokan, Ontario
  • Comtois, Quebec
  • Girardville, Quebec
  • Ignace, Ontario
  • La Doré, Quebec
  • La Tuque, Quebec
  • Maniwaki, Quebec
  • Mistassini, Quebec
  • Obedjiwan, Quebec
  • Pointe-aux-Outardes, Quebec
  • Saint-Félicien, Quebec
  • Saint-Thomas, Quebec
  • Senneterre, Quebec
  • Thunder Bay, Ontario
  • Château-Richer, Quebec
  • La Doré, Quebec
  • Larouche, Quebec
  • Saint-Prime, Quebec
  • Thunder Bay, Ontario
United States
  • Calhoun, Tennessee
  • Coosa Pines, Alabama
  • Grenada, Mississippi
  • Hialeah, Florida
  • Menominee, Michigan
  • Sanford, Florida
  • Augusta, Georgia[a 3]
  1. ↑ "2019 Form 10-K". https://www.resolutefp.com/uploadedFiles/Investors/Financial_Reports/2019_10-K_Resolute-RFP.pdf. 
  2. ↑ 50% interest in joint venture
  3. ↑ indefinitely idled

Sustainability

Resolute Forest Products became a member of the World Wildlife Fund’s Climate Saver’s Program on November 10, 2011 with a commitment to “reduce their absolute greenhouse gas (GHG) emissions by 65 per cent by 2015 below 2000 levels” .[14]

Issues

Employees

The Communications, Energy and Paperworkers Union of Canada has been critical of the company's attempts to renegotiate pension contributions with their pension underfunded by approximately $1.9 billion.[15] On 3 May 2013, it was reported that an agreement was put in place which may address the ongoing pension dispute with Resolute agreeing to increase its pension payments and “stabilize the pension plan over the next decade.”[16]

Environmental accreditations

On August 29, 2013 a case study examining the use of Forest Stewardship Council (FSC) Controlled Wood system by Resolute was released.[17] The report concludes that Resolute's improper application of Forest Stewardship Council standards threatens the integrity of the FSC system and brand. On January 1, 2014, after a successful appeal by the Grand Council of the Crees, three FSC certificates covering more than 8 million hectares of forest were suspended. FSC found violations of its principles relating to indigenous Peoples’ rights, environmental impacts, forest benefits, monitoring and assessment, and High Conservation Value forests.[18]

Greenpeace

Resolute Forest Products has been criticized by Greenpeace and other organizations for advancing logging and road building in endangered species habitat in Québec and Ontario.[19]

On 18 May 2010, Resolute Forest Products joined 29 other organizations including Greenpeace Canada and the David Suzuki Foundation[20] to become a founding member of the Canadian Boreal Forest Agreement (CBFA).[21] The agreement formalizes the members’ commitments to conserving vast areas of forests and enabling the legislated protection of large-scale areas that are needed to preserve threatened species such as woodland caribou. Claiming a lack of progress on delivering results within the CBFA, particularly on the creation of protected areas and caribou conservation plans, Greenpeace Canada and Canopy, two founding signatories, departed the agreement in December 2012 and April 2013 respectively.[22] Other environmental organizations suspended work with Resolute on May 21, 2013 announcing that "Resolute will not do the minimum that the science says is required to protect our forests and the threatened caribou that call them home."[23]

Greenpeace Canada released a report examining Resolute's sustainability claims in May 2013, alleging that the company is deceiving customers about the sustainability of their forestry operations and their interactions with communities, First Nations and workers.[24] Greenpeace withdrew an earlier criticism of Resolute Forest Products on 19 March 2013 noting that a December 2012 campaign against the company “incorrectly stated that Resolute had breached the Canadian Boreal Forest Agreement”.[25]

On May 23, 2013, Resolute filed a $7,000,000 defamation lawsuit against Greenpeace Canada and two of its staff in Ontario Superior Court alleging the organization interfered with economic relations with their customers.[26] In response Greenpeace launched a legal defense fund and characterized the lawsuit as a Strategic Lawsuit Against Public Participation (SLAPP). In September 2016, the Ontario Superior Court dismissed Resolute's defamation action on the grounds it was designed to "greatly expand the scope of the litigation and transform the trial into an inquiry into Greenpeace." The logging company responded saying the "court decision does not in any way diminish the claims against Greenpeace of defamation and intentional interference with commercial relations."[27]

In May 2016, Resolute filed a $300 million-dollar lawsuit in Atlanta, Georgia using the United States' RICO Act (which is primarily for fighting organized crime and racketeering) against Greenpeace. The complaint alleges that the environmental group is a "global fraud" that is tricking people in both the US and around the world into donating "millions of dollars based on materially false and misleading claims about its purported environmental purpose and its “campaigns” against targeted companies."[28] In January 2017, Greenpeace asked a court in Georgia for the case to be dismissed on the grounds that RICO "is simply an intimidation tactic that would set a dangerous precedent if successful" because Resolute "is trying to silence critics of its logging practices in Canada's boreal forests."[29] In June 2017 several major book publishers including Penguin Random House and HarperCollins have had to respond to Resolute's RICO action after a petition, which was signed by more than 100 authors in support of Greenpeace, was presented at BookExpo 2017, the USA's publishing trade show. The petition's signatories are concerned that RICO - in this particular action - is a legal attempt to stymie free speech.[30]

In 2019, the federal district court for the Northern District of California dismissed most of the claims by Resolute Forest Products and, in April 2022, the court ordered Resolute Forest Products to pay Greenpeace $800,000 in costs after Greenpeace brought an anti-SLAPP (Strategic Litigation Against Public Participation) motion against the claims by Resolute Forest Products that Greenpeace had violated the RICO Act.[31]

References

  1. ↑ "Duncan K. Davies Named Chairman of the Board of Resolute" (in en-US). 2021-09-13. https://resolutefp.mediaroom.com/2021-09-13-Duncan-K-Davies-Named-Chairman-of-the-Board-of-Resolute. 
  2. ↑ "Executive Team" (in en-US). https://www.resolutefp.com/about_us/executive_team/. 
  3. ↑ "Products" (in en-US). https://www.resolutefp.com/Products/. 
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 "2020 10-K" (in en-US). https://www.resolutefp.com/uploadedFiles/Investors/Financial_Reports/2020_10-K_Resolute-RFP.pdf. 
  5. ↑ "Abitibi and Bowater Agree to Merge In All-Stock Deal". January 29, 2007. https://www.cnbc.com/2007/01/29/abitibi-and-bowater-agree-to-merge-in-allstock-deal.html. 
  6. ↑ "Bowater completes merger with Abitibi". Charlotte Business Journal. October 29, 2007. https://www.bizjournals.com/charlotte/stories/2007/10/29/daily3.html. 
  7. ↑ 7.0 7.1 "Abitibi, Bowater merging to create forestry giant". CBC News. 2007-01-30. http://www.cbc.ca/money/story/2007/01/29/abitibibowater.html. Retrieved 2007-02-26. 
  8. ↑ 8.0 8.1 "AbitibiBowater Changing Name To Resolute Forest Products". The Globe and Mail (Toronto). 2011-10-11. https://www.theglobeandmail.com/globe-investor/news-sources/?date=20111011&archive=cnw&slug=C2645. Retrieved 2011-10-14. 
  9. ↑ 9.0 9.1 Forsyth, Paul (28 December 2011). "New name for AbitibiBowater". NiagaraThisWeek.com. http://www.niagarathisweek.com/news/business/article/1270861--new-name-for-abitibibowater. Retrieved 31 December 2011. 
  10. ↑ "AbitibiBowater gets bankruptcy protection in Canada". CBC News. 2009-04-18. http://www.cbc.ca/news/canada/story/2009/04/18/abitibibowater-bankruptcy019.html. Retrieved 2011-09-26. 
  11. ↑ "AbitibiBowater gets court OK for $206 mln DIP". Reuters. 2009-04-17. http://uk.reuters.com/article/marketsNewsUS/idUKN1734999020090417. Retrieved 2009-04-20. 
  12. ↑ "AbitibiBowater emerges from bankruptcy". Reuters. 2010-12-09. https://www.reuters.com/article/abitibibowater-idUSN0925114020101209. Retrieved 2011-09-13. 
  13. ↑ "Our History". Resolute Forest Products. 2020. https://www.resolutefp.com/About_Us/Our_History/. 
  14. ↑ "Resolute Forest Products Joins WWF Climate Savers Program". WWF. 2011-11-10. http://www.wwf.ca/?10101/Resolute-Forest-Products-Joins-WWF-Climate-Savers-Program. Retrieved 2013-07-05. 
  15. ↑ "Resolute workers have done 'enough,' union says". CBC News. http://www.cbc.ca/news/canada/thunder-bay/story/2012/08/10/tby-resolute-forest-products.html. 
  16. ↑ "Kenora mill workers union says conflict over pensions may be settled for good". Kenora Daily Miner and News. 2013-05-03. http://www.kenoradailyminerandnews.com/2013/05/03/kenora-mill-workers-union-says-conflict-over-pensions-may-be-settled-for-good. Retrieved 2013-07-05. 
  17. ↑ "Archived copy". http://www.greenpeace.org/canada/Global/canada/report/2013/08/FSCatRisk-CanadasResoluteForestProducts.pdf. 
  18. ↑ "Resolute Forest Products' FSC Forest Management Certificates to be suspended". FSC Newsroom. 2013-12-18. https://ca.fsc.org/newsroom.239.219.htm. Retrieved 2014-02-28. 
  19. ↑ "Resolute responds to Greenpeace campaigns by labelling us a "criminal enterprise". Other corporations respond by… - Greenpeace Canada". Greenpeace.org. 2017-01-23. http://www.greenpeace.org/canada/resolute/. Retrieved 2018-08-11. 
  20. ↑ "Canadian Boreal Forest Agreement: Who's involved". http://canadianborealforestagreement.com/index.php/en/whos-involved. 
  21. ↑ "Canadian Boreal Forest Agreement: The Agreement". http://canadianborealforestagreement.com/index.php/en/the-canadian-boreal-agreement. 
  22. ↑ "Another environmental group pulls out of Canadian logging pact". The Globe and Mail (Toronto). 2013-04-17. https://www.theglobeandmail.com/news/british-columbia/another-environmental-group-pulls-out-of-canadian-logging-pact/article11305701/#dashboard/follows/. 
  23. ↑ "Environmental groups suspend further work with Resolute Forest Products under Canadian Boreal Forest Agreement". The Wall Street Journal. 2013-05-21. https://online.wsj.com/article/PR-CO-20130521-909445.html?mod=googlenews_wsj#articleTabs%3Darticle. 
  24. ↑ "Resolute False Promises: The [un]sustainability report 2013 | Greenpeace Canada". http://www.greenpeace.org/canada/en/campaigns/forests/boreal/Resources/Reports/Resolute-False-Promises-the-unsustainability-report-2013/. 
  25. ↑ "Notice of correction regarding Resolute Forest Products' operations". Greenpeace. 2013-03-19. http://www.greenpeace.org/canada/Global/canada/pr/2013/02/Notice_of_correction_regarding_Resolute_Forest_Products_operations.pdf. Retrieved 2013-07-05. 
  26. ↑ "Quebec forestry company suing Greenpeace for $7 million". The Star (Toronto). https://www.thestar.com/news/canada/2013/06/24/quebec_forestry_company_suing_greenpeace_for_7_million.html. 
  27. ↑ "Court dismisses 'vexatious' allegations by Resolute Forest Products against Greenpeace". Financial Post. September 2, 2016. http://business.financialpost.com/commodities/agriculture/court-dismisses-vexatious-allegations-by-resolute-forest-products-against-greenpeace/wcm/50d4b95f-c9e6-4fb0-aebf-cff1cbcfd538. 
  28. ↑ "RESOLUTE FOREST PRODUCTS, INC. vs. GREENPEACE INTERNATIONAL". www.washingtonpost.com. https://www.washingtonpost.com/news/volokh-conspiracy/wp-content/uploads/sites/14/2016/05/complaint.pdf. Retrieved June 21, 2017. 
  29. ↑ "Resolute, Canadian Forest Giant, Uses Trump-Linked Law Firm To Sue Greenpeace". Huffington Post. January 24, 2017. http://www.huffingtonpost.ca/2017/01/24/resolute-greenpeace-lawsuit_n_14367358.html. 
  30. ↑ "Major publishers move to defend Greenpeace in dispute with logging firm". The Guardian. 21 June 2017. https://www.theguardian.com/books/2017/jun/21/major-publishers-move-to-defend-greenpeace-in-dispute-with-logging-firm. 
  31. ↑ "Forest Product Companies to Pay $800,000 in Attorney's Fees and Costs after Dismissal of RICO and Other Claims Against Greenpeace". Climate Change Litigation. http://climatecasechart.com/climate-change-litigation/case/resolute-forest-products-inc-v-greenpeace-international/. 

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