Resolute Forest Products Inc. entered into a framework agreement with the Quebec government for the renewal of water power leases for certain generating stations in Quebec's Saguenay-Lac-Saint-Jean region along with the consolidation of some of its facilities.
The agreement will increase the timber supply for the La Doré and Saint-Félicien (Quebec) sawmills and consolidate its operations in the region. The Quebec government has also granted 150,000 cubic meter volume of wood for carrying out economic development projects to the Aboriginal community of Mashteuiatsh.
To ensure the economic development projects of First Nations community, the additional volume will give these sawmills the required wood supply to maintain their operations. With the consolidation of Quebec facilities, the sawmill operations are likely to improve and create more employment opportunities.
Headquartered in Montreal, Canada, Resolute Forest operates over 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. It offers a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products Also, the company sells pulpwood, saw timber, and wood chips and recycles newspapers and magazines .
The company continues to grow its businesses with acquisitions and investment commitments and optimizing paper assets to maximize its capacity utilization and margins.
Resolute Forest currently has a Zacks Rank #1 (Strong Buy). Other stocks that look promising and are worth a look include UPM-Kymmene Oyj (UPMKY - Free Report) carrying a Zacks Rank #1 (Strong Buy) and Clearwater Paper Corp. (CLW - Free Report) and Fibria Celulose SA (FBR - Free Report) , both carrying a Zacks Rank #2 (Buy).