v3.26.1
Temiscaming HPC Operations
3 Months Ended
Mar. 28, 2026
Restructuring and Related Activities [Abstract]  
Temiscaming HPC Operations
2. Temiscaming HPC Operations
In July 2024, the Company indefinitely suspended operations at its Temiscaming HPC plant, idling the plant in a safe and environmentally sound manner. Since the start of the suspension in 2024, the Company has incurred total one-time operating charges of $18 million, including $7 million of mothballing costs, $6 million of severance and other employee costs and $5 million of other costs. The Company estimates that remaining one-time charges of approximately $1 million will be incurred in 2026. In conjunction with the suspension of operations, in the third quarter of 2024, the Company recognized a non-cash asset impairment of $25 million, as it was determined that the Temiscaming HPC plant’s net carrying value exceeded its estimated fair value.
In the first quarter of 2026, the Company determined to permanently cease DWP production at the site, which removes the primary economic reason for operating the HPC plant. Consequently, the plant assets’ useful lives were reduced to zero and other impacted assets at the Temiscaming site were also reviewed for potential obsolescence. This resulted in non-cash accelerated depreciation charges of $35 million and other asset adjustments of $6 million, which were recorded to the High Purity Cellulose segment in “Temiscaming HPC permanent idling charges” in the condensed consolidated statements of operations.
Certain infrastructure assets of the Temiscaming HPC plant continue to run in support of the ongoing energy and other needs of the Temiscaming paperboard and high yield pulp plants, which continue to operate at full capacity, subject to market conditions.