MONTRÉAL, Quebec -- Resolute Forest Products Inc. announced the indefinite idling of its paper mill located in Thorold, Ontario. The facility, which employed over 100 workers, has an annual production capacity of approximately 197,000 metric tons of newsprint on one machine using 100 percent recycled furnish.

The company said the difficult decision to proceed with the indefinite idling is driven by the ongoing significant decline in North American newsprint consumption, coupled with the increasing cost of recovered paper. The company had already been taking downtime at the operation since mid-December 2016.

Resolute said it is collaborating with Stone House Investments Holdings Inc., an independent third party interested in converting Thorold to production of an alternative product. Resolute said it recognizes the impact of the announcement and believes conversion of the mill would provide a more sustainable future for the operation, its workforce and the surrounding community.

The company said it remains committed to customer service and delivery of high-quality products, and is working closely with customers to ensure a smooth transition.

The indefinite idling of the paper mill is effective immediately.