Resolute Forest Products (French: ''Produits forestiers Résolu''), formerly known as AbitibiBowater Inc., is a Canada-based
pulp and paper company. Headquartered in
Montreal, Quebec
Montreal is the List of towns in Quebec, largest city in the Provinces and territories of Canada, province of Quebec, the List of the largest municipalities in Canada by population, second-largest in Canada, and the List of North American cit ...
, the company was formed in 2007 by the merger of
Bowater and
Abitibi-Consolidated.
At that time, the merged company was the third largest pulp and paper company in
North America
North America is a continent in the Northern Hemisphere, Northern and Western Hemisphere, Western hemispheres. North America is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South Ameri ...
, and the eighth largest in the world.
On 1 July 2012, the company's name was changed to Resolute Forest Products Inc.
In 2023, the company was acquired by the Paper Excellence Group through its subsidiary,
Domtar
Domtar Corporation is a leading, privately held manufacturer of diversified forest products, with a workforce of roughly 14,000 employees in more than 60 locations across North America.
While Domtar operated independently for several decades a ...
.
History
On 29 January 2007,
Bowater Inc. and
Abitibi-Consolidated announced they would be merging to create AbitibiBowater.
[ 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
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...
in the United States and similar protection under the Companies' Creditors Arrangement Act
The ''Companies' Creditors Arrangement Act'' (CCAA; ) is a statute of the Parliament of Canada that allows insolvent corporations owing their creditors in excess of $5 million to restructure their businesses and financial affairs.
The CCAA with ...
in Canada, eventually reporting debt of about US$6 billion. The company won court approval for an injection of $206 million to get it through its financial restructuring in April 2009 and emerged from creditor protection on 9 December 2010. AbitibiBowater changed its operating name to Resolute Forest Products on 1 July 2012. In a round of market consolidation, a new private company called the Paper Excellence Group acquired Catalyst Paper in 2019, Domtar
Domtar Corporation is a leading, privately held manufacturer of diversified forest products, with a workforce of roughly 14,000 employees in more than 60 locations across North America.
While Domtar operated independently for several decades a ...
in 2021 and Resolute in 2023.
Predecessor companies
The following are the principal predecessor companies of Resolute:
Operations
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. 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.”
Environmental accreditations
On August 29, 2013 a case study examining the use of Forest Stewardship Council
The Forest Stewardship Council GmbH (FSC) is an international non-profit, multistakeholder organization established in 1993 that promotes responsible management of the world's forests via timber certification. This organization uses a market-b ...
(FSC) Controlled Wood system by Resolute was released. 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
The Grand Council of the Crees (Eeyou Istchee) or the GCC(EI) (ᐄᔨᔨᐤ ᐊᔅᒌ in Cree), is the political body that represents the approximately 20,000 Cree people (who call themselves "Eeyou" or "Eenou" in the various dialects of East ...
, three FSC certificates covering more than 8 million hectare
The hectare (; SI symbol: ha) is a non-SI metric unit of area equal to a square with 100-metre sides (1 hm2), that is, square metres (), and is primarily used in the measurement of land. There are 100 hectares in one square kilometre. ...
s 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. 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
Greenhouse gases (GHGs) are the gases in the atmosphere that raise the surface temperature of planets such as the Earth. Unlike other gases, greenhouse gases absorb the radiations that a planet emits, resulting in the greenhouse effect. T ...
(GHG) emissions by 65 per cent by 2015 below 2000 levels” .
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.
On 18 May 2010, Resolute Forest Products joined 29 other organizations including Greenpeace
Greenpeace is an independent global campaigning network, founded in Canada in 1971 by a group of Environmental movement, environmental activists. Greenpeace states its goal is to "ensure the ability of the Earth to nurture life in all its biod ...
Canada and the David Suzuki Foundation to become a founding member of the Canadian Boreal Forest Agreement (CBFA). 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. 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."
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
Forestry is the science and craft of creating, managing, planting, using, conserving and repairing forests and woodlands for associated resources for human and Natural environment, environmental benefits. Forestry is practiced in plantations and ...
operations and their interactions with communities, First Nations and workers. 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”.
On May 23, 2013, Resolute filed a $7,000,000 defamation lawsuit against Greenpeace Canada and two of its staff in Ontario Superior Court
The Superior Court of Justice (French: ''Cour supérieure de justice'') is a superior court in Ontario. The Court sits in 52 locations across the province, including 17 Family Court locations, and consists of over 300 federally appointed judges ...
alleging the organization interfered with economic relations with their customers. In response Greenpeace launched a legal defense fund and characterized the lawsuit as a Strategic Lawsuit Against Public Participation
Strategic lawsuits against public participation (also known as SLAPP suits or intimidation lawsuits), or strategic litigation against public participation, are lawsuits intended to censor, intimidate, and silence critics by burdening them with ...
(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."
In May 2016, Resolute filed a $300 million-dollar lawsuit in Atlanta, Georgia
Atlanta ( ) is the List of capitals in the United States, capital and List of municipalities in Georgia (U.S. state), most populous city in the U.S. state of Georgia (U.S. state), Georgia. It is the county seat, seat of Fulton County, Georg ...
using the United States' RICO Act
The Racketeer Influenced and Corrupt Organizations (RICO) Act is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization.
RICO was e ...
(which is primarily for fighting organized crime
Organized crime is a category of transnational organized crime, transnational, national, or local group of centralized enterprises run to engage in illegal activity, most commonly for profit. While organized crime is generally thought of as a f ...
and racketeering
Racketeering is a type of organized crime in which the perpetrators set up a coercion, coercive, fraud, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit. ...
) 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." In January 2017, Greenpeace asked a court in Georgia for the case to be dismissed on the grounds that the company's use of 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." In June 2017 several major book publishers including Penguin Random House
Penguin Random House Limited is a British-American multinational corporation, multinational conglomerate (company), conglomerate publishing company formed on July 1, 2013, with the merger of Penguin Books and Random House. Penguin Books was or ...
and HarperCollins
HarperCollins Publishers LLC is a British–American publishing company that is considered to be one of the "Big Five (publishers), Big Five" English-language publishers, along with Penguin Random House, Hachette Book Group USA, Hachette, Macmi ...
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 using RICO in this particular action is a legal attempt to stymie free speech.
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 motion against the company.
References
External links
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{{Authority control
Companies formerly listed on the New York Stock Exchange
Companies formerly listed on the Toronto Stock Exchange
Companies based in Montreal
Companies that filed for Chapter 11 bankruptcy in 2009
Pulp and paper companies of Canada
Companies that have filed for bankruptcy in Canada
2007 mergers and acquisitions
2023 mergers and acquisitions
Manufacturing companies established in 2007
Manufacturing companies based in Montreal
Canadian companies established in 2007