Fortress Paper Declares Temporary Downtime at Specialty Cellulose Mill in Thurso
Fortress Global Enterprises Inc. announced its decision to take downtime at its Fortress Specialty Cellulose Mill in Thurso, Quebec. The downtime, effective yesterday, will be for an unspecified period. The company has kept open the option to restart the mill operations upon significant improvement in market conditions.
The company press release noted that the ongoing trade dispute between the U.S. and China is one among the few factors that forced the company to declare temporary downtime. Also, the sharp decline in Chinese demand for dissolving pulp has led to uncertainties and notable decline in pricing. The downtime will help the company in running down the huge inventory of dissolving pulp. Incidentally, the mill had recorded second highest month of dissolving pulp production in August this year.
Meantime, the company reported significant progress in advancement of its Strategic Initiative in partnership with its financial advisor, Houlihan Lokey Capital, Inc., which includes recapitalization and restructuring of key assets. In addition, the company is in efforts to develop various potential transaction structures, in collaboration with certain stakeholders and other third parties.
The company had appointed Giovanni Iadeluca, the Company’s President and Chief Executive Officer as a director with effect from October this year, in replacement of Terrence Kavanagh, who had resigned from the Board.