Sylvamo may shut down production at Russian mill later this week

Shares of Sylvamo Corp. SLVM, -4.61% sank 5.1% in premarket trading Wednesday, after the Tennessee-based paper company said it "may curtail or temporarily shut down" production at its mill in Svetogorsk, Russia later this week, because it is facing "inadequate supplies of critical raw materials." The company said the Svetogorsk mill, which is located at the Finland border, has about 1,700 employees, and has an annual capacity of 720,000 short tons of pulp, paper and paperboard. The operations there accounted for about 15% of Sylvamo's 2021 revenue. Sylvamo said the mill is also the primary provider of water, electricity and water treatment for the Svetogorsk community. The company said it was not updating or affirming its financial guidance provided on Feb. 11. "We hope for an immediate cease-fire agreement and swift diplomatic resolution," said Chief Executive Jean-Michel RibiƩras. "Our thoughts are with the citizens of Ukraine." The stock has gained 7.6% over the past three months through Tuesday, while the S&P 500 SPX, +0.60% has slipped 5.9%.

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