RYAM To Suspend Temiscaming High Purity Cellulose Plant Operations For An Indefinite Period, Company Remains Committed To Operating Its Assets Profitably
Portfolio Pulse from Benzinga Newsdesk
Rayonier Advanced Materials Inc. (RYAM) will suspend operations at its Temiscaming High Purity Cellulose plant from July 2, 2024, due to market conditions, high costs, and to improve cash flow and financial performance. The suspension will reduce global HPC production and result in 275 layoffs, but does not affect RYAM's paperboard and high-yield pulp plants.

April 29, 2024 | 8:20 pm
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RYAM's decision to suspend its Temiscaming HPC plant operations aims to mitigate ongoing losses and improve financial health amid challenging market conditions.
The suspension of the Temiscaming HPC plant by RYAM is a strategic move to address its financial challenges and improve profitability. While the decision may have a short-term negative impact on sentiment due to layoffs and production cuts, it is likely to be viewed positively in the long term for its potential to enhance the company's financial stability and focus on profitable operations. The impact on the stock price in the short term is neutral as the market digests the potential benefits against the immediate costs and workforce reduction.
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IMPORTANCE 90
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