Fortress Paper Provides Update on Auxiliary System Failure at its Dissolving Pulp Mill

Resolute Forest Products Inc. announced two separate transactions to grow and improve the competitiveness of its wood products business. Resolute reached an agreement with Louisiana-Pacific Corporation to acquire the latter's 50% equity interest in two joint ventures that produce I-joists in the Lac-Saint-Jean region of Quebec for $50 million, subject to customary adjustments. Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership are located in Larouche and Saint-Prime, respectively, and are equity method investments in which Resolute has a 50% interest in each entity. Resolute operates the facilities and its joint-venture partner, Louisiana-Pacific, sells the products. Resolute will enter into agreements with Louisiana-Pacific to continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations. In a separate transaction, Resolute also announced an agreement signed on February 11 with Boralex (TSX: BLX) for the purchase of a cogeneration facility in Senneterre, Quebec. "The purchase of the 34.5-megawatt cogeneration facility, adjacent to our Senneterre sawmill, builds on our significant investments in the region, including the ongoing project toward a new planer and associated equipment we announced last summer, as well as operational improvements recently completed at our Comtois sawmill. With this cogen, we will maximize the use of biomass from our regional operations, generating green power and providing a platform for future growth and enhanced competitiveness in the Abitibi-Témiscamingue region. We are pleased to welcome the 30-plus employees of the cogeneration facility to Resolute," added Mr. Lalonde.

The Koehler Group is to convert its power plant at the Koehler Paper site in Greiz from pulverized lignite to fine wood fraction fuel. The experts at Koehler Renewable Energy, a part of the Koehler Group, have succeeded in developing an innovative technique that will allow a type of biomass to be used as fuel in the existing coal‐fired power plant in a completely new way. It is an innovation on the market. The plant’s conversion from lignite to fine wood fraction as the fuel, is part of the Group’s climate strategy. It is an important contribution to keeping Koehler’s promise of producing more energy from renewable sources by 2030 than is required for its paper production operations. In total, the conversion will save 24,000 metric tons of CO₂ emissions per year at the Greiz site. In addition, converting the fuel will also significantly reduce sulfurous emissions and pollutants compared with pulverized lignite.

After a successful year of transformation in 2019, Zanders Paper posted a strong first quarter of 2020; then the coronavirus pandemic hit the global economy and led to a significant decline in sales of specialty papers for consumables. The various effects of this challenging situation could not be compensated completely by the German company despite the increased operating profitability and the fundamentally good set-up and positioning. Taking these circumstances into account, the Zanders Paper management has decided to carry out the continuation of the long-term restructuring of the company within the framework of insolvency proceedings and today filed an application to this effect with the competent district court in Cologne. This is done to protect the interests of all stakeholders including but not limited to the employees, creditors, customers and the City of Bergisch Gladbach. This gives Zanders Paper a breathing room to further rebuild and shape the company for the future. During the opening insolvency proceedings, which are expected to last two to three months, business operations will be continued by the insolvency administrator.