The company said Thursday that it will install a pulp digester and other wood chip processing equipment to make its operations more versatile.
CEO Richard Garneau said the upgrade will let the company adjust its grade production to accommodate market dynamics over time. It will also decrease the use of chemicals and steam.
About 50 workers will be hired at the Tennessee facility, which already employs 480 people, the company said.
The work is expected to be complete mid-2016.
The Calhoun mill operates three machines with a capacity of 609,000 tonnes of market pulp, specialty papers and newsprint.
Resolute has pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada.