MONTREAL, QUEBEC - Two sawmills owned by Resolute Forest Products (NYSE: RFP) (TSX: RFP) will see C$11 million investment, as the former BowaterAbitibi company upgrades its Comtois sawmill in Lebel-sur-Quévillon, Quebec, and its Senneterre, Quebec, sawmill.

"These investments will put us in a good position to benefit from a turnaround in residential construction in the United States," said Yves Laflamme, senior VP, wood products, "which is essential to maintaining jobs in the northern Québec and Abitibi-Témiscamingue regions. The upgrades will consolidate our activities in both regions by creating synergies, stabilizing our operations and preserving good jobs."

At the Comtois sawmill, C$9 million will be invested in the construction of a new saw line,  increasing  lumber production volume and reducing fiber loss. A $2 million investment at the  Senneterre sawmill will improve the performance of the planing complex. The sawmill and planing mill investment will be completed by the second quarter of 2013.

Given the upbeat market outlook for lumber, Resolute Forest Products says it plans to focus on wood products, reducing emphasis on pulp and paper related products. Resolute Forest Products  operates 22 pulp and paper mills and 22 wood products facilities in the United States, Canada and South Korea, marketing products in more than 90 countries.

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