Resolute Forest Products Inc's Business Segments

We are a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers. We own or operate over 40 pulp, paper, tissue and wood products facilities in the United States, Canada and South Korea, as well as power generation assets in Canada. Marketing our products in close to 80 countries, we have third-party certified 100% of our managed woodlands to at least one of two internationally recognized forest management standards.

Market pulp
We produce market pulp at seven facilities in North America, with total capacity of approximately 1.8 million metric tons, or approximately 10% of total North American capacity, making us the third largest pulp producer in North America. Approximately 70% of our virgin pulp capacity is softwood-based: northern bleached softwood kraft pulp, southern bleached softwood kraft pulp and fluff pulp. We are also the world’s largest producer of recycled bleached kraft pulp and a competitive producer of northern bleached hardwood kraft pulp and southern bleached hardwood kraft pulp. Wood pulp is the most commonly used material to make paper. Pulp not converted into paper is sold as market pulp, which is used to make a range of consumer products including tissue, packaging, specialty paper products, diapers and other absorbent products. Approximately 30% of our 2015 market pulp shipments were exported outside of North America, including significant exports to Europe, Asia and Latin America.

Tissue
With the acquisition of Atlas Paper in 2015 (as described below), we now produce tissue products at two facilities in North America, both located in Florida. With total capacity of 63,000 short tons (57,000 metric tons), we are a fully integrated manufacturer operating three tissue machines and 14 converting lines. We manufacture a range of tissue products for the away-from-home and private-label at-home markets, including recycled and virgin paper products, covering premium, value and economy grades. These facilities will be complemented by the tissue manufacturing and converting facility in Calhoun, Tennessee, which will have a total capacity of 66,000 short tons (60,000 metric tons). Starting in 2017, we will manufacture premium and ultra-premium tissue products in Calhoun.

Wood products
We operate 15 sawmills in Canada that produce construction-grade lumber sold in North America, mostly on the east coast. Our sawmills produce dimension spruce-pine-fir lumber and are a major source of wood chips for our pulp and paper mills and wood residue we use as fuel in our power cogeneration assets and other operations. In 2015, we shipped 1.6 billion board feet of construction-grade lumber within North America. We also operate two remanufactured wood products facilities that produce bed frame components, finger joints and furring strips, two engineered wood products facilities that produce I-joists for the construction industry, and one wood pellet facility, all of which are located in Canada.

Newsprint
We produce newsprint at 10 facilities in North America and one facility in South Korea. With total capacity of approximately 2.4 million metric tons, or approximately 9% of total worldwide capacity, we are the largest producer of newsprint in the world by capacity. We are also the largest North American producer of newsprint, with capacity of approximately 2.2 million metric tons, or approximately 41% of total North American capacity. We sell newsprint to newspaper publishers all over the world and also to commercial printers in North America for uses such as inserts and flyers. In 2015, approximately 61% of our total newsprint shipments were to North American markets.

Specialty papers
We produce specialty papers at five facilities in North America. Our specialty papers segment is composed of uncoated mechanical papers, including supercalendered (“SC”), superbright, high bright, bulky book and directory papers, as well as coated mechanical papers and uncoated freesheet papers. With total capacity of approximately 1.2 million short tons (1.1 million metric tons), or approximately 30% of total North American capacity, we are the largest producer of uncoated mechanical papers in North America, and the third largest in the world. Also, with 541,000 short tons (491,000 metric tons) of capacity, or approximately 19% of total North American capacity, we are North America’s third largest producer of coated mechanical papers. Our specialty papers are used in books, retail inserts, direct mail, coupons, magazines, catalogs and other commercial printing applications. We sell specialty papers to major commercial printers, direct mailers, publishers, catalogers and retailers, mostly in North America.