RYAM Idles Quebec Paperboard Mill, Citing Tariffs; 400 Jobs Hit

Rayonier Advanced Materials has idled its pulp and paperboard mill in Témiscaming, Quebec, affecting more than 400 employees, with tariffs cited as a key factor in making the business unsustainable.

Unifor, Canada's largest private sector union, reported roughly 300 of the affected workers are union members. The company said tariffs contributed to difficult market conditions, according to multiple local news reports. Neither Unifor nor RYAM responded to requests for comment.

The stakes for U.S. buyers are high. RYAM ships about 75% of its paperboard into the U.S. market, CEO Daniel Krawczyk said during his first earnings call as CEO on Aug. 5.

"When we look at the tariffs surrounding our paperboard products, it has the potential to materially impact the economics of our paperboard and high-yield pulp business," Krawczyk said. "We're working on the expected commercial actions with our customers to understand how we can offset those as well as operational responses that we can take to mitigate any negative effects on the business."

What led to the shutdown?

In late August, RYAM announced its intention to suspend Témiscaming operations in September. Unifor said the company postponed the action until October.

A company spokesperson told The North Bay Nugget that the shutdown affects all onsite operations except a boiler and a wastewater treatment plant, which will continue to run.

The Jacksonville, Florida-based company gained the mill through its 2017 acquisition of Tembec. The site has a troubled recent history:

• RYAM idled the Témiscaming mill once before.
• In 2023, the company announced it was exploring a sale of the mill.
• In 2024, it closed the adjacent high-purity cellulose plant.
• The company website indicates Témiscaming is RYAM's only paperboard production site.

How much pressure is RYAM under financially?

The company reported a $33 million loss from continuing operations in the second quarter of 2026, its most recent earnings release in August. Mill Pond Capital, a shareholder, urged the board in June to conduct a full sale, noting that "RYAM has reported a loss from continuing operations every year since 2019."

Corporate instability has compounded the financial strain. Private equity firm American Industrial Partners offered to buy RYAM in November 2025 for twice its trading value, citing interest in cellulose fibers; the board rejected the offer in December.

In April, RYAM announced it would "explore strategic alternatives," including a potential sale or merger. That same announcement disclosed the resignation of CEO Scott Sutton, who had led the company for less than four months. Daniel Krawczyk was named CEO in June.

Is this an isolated case?

No. The U.S.-Canada trade war is producing concrete casualties across the packaging sector.

Montreal-based Supremex announced a restructuring plan this week that includes laying off 6% of its workforce, citing an estimated $10 million to $12 million hit from tariffs. Le Journal de Montreal reported that tariffs prompted Ohio-based glass maker O-I to indefinitely shut down two of six production lines at its Pointe-Saint-Charles plant in Montreal, with anticipated layoffs for nearly 20% of its 340 employees; up to 70% of the plant's output reportedly goes to the U.S.

Unifor said in a news release that it is still working to "secure the future of the Témiscaming mill." The union has organized a National Day of Action for Forestry for Oct. 16 at mills across Canada, part of a broader campaign against what it calls a "perfect storm of crises impacting Canadian forestry," including the trade conflict, economics and environmental conditions.

With RYAM's strategic review ongoing and its sole paperboard site dark, U.S. paperboard buyers dependent on Canadian supply face a fresh round of sourcing uncertainty heading into 2027.