MONTREAL - Resolute Forest Products Inc. is indefinitely idling its pulp and paper operations at its mill in Calhoun, Tenn., affecting 350 employees.

Tissue manufacturing and converting will continue at the site and the adjacent distribution centre will remain in full operation.

The Montreal-based company says the mill lost US$62 million over the 12 months ending Sept. 30 despite strong market conditions for pulp and uncoated freesheet paper.

Resolute says pulp and paper operations will continue for up to 60 days to ensure an orderly shutdown, to accommodate environmental safeguards and to transition customers.

The facility, which employs 545 people, has an annual capacity of 147,000 tonnes of pulp and 149,000 tonness of paper as well as 60,000 tonnes of tissue.

It expects the move once completed will improve its overall operating income by US$35 million to US$40 million.