Fortress Global Enterprises Inc. ("Fortress") will be taking market downtime at the Fortress Specialty Cellulose Mill (the "FSC Mill") in Thurso, Québec, Canada. The ongoing United States-China trade dispute, as well as weakening Chinese domestic textile and apparel consumption has destabilized the demand for dissolving pulp and caused a significant decline in pricing. As a result, the company will deploy a temporary market curtailment strategy to preserve the option of restarting the mill once prices rebound.
Accordingly, the company will take market downtime at the FSC Mill commencing October 8th, 2019 for an unspecified interim period. Market downtime will allow the company to manage its dissolving pulp inventory build-up, which has resulted from the recent uncertainty in pricing and demand, and execute on its previously announced strategic and financing initiative (the "Strategic Initiative").
Fortress operates its dissolving pulp business at the FSC Mill located in Thurso, Québec, which also operates in the renewable energy generation sector through its cogeneration facility.