Domtar to Reduce Paper Making Capacity
Domtar announced today that it will close its Port Edwards, Wisconsin mill as well as reorganize production at its
The Port Edwards, Wisconsin mill, which produces uncoated freesheet paper, has an annual production capacity of 165,000 tons. Operations are expected to cease in the second quarter of 2008. Approximately 500 employees will be affected by this closure. Most product lines will be gradually transferred to more efficient facilities.
"We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers," said Mr. Raymond Royer, President and Chief Executive Officer of Domtar. "In spite of years of sustained efforts from our dedicated employees as well as from the company, high costs posed significant challenges to these facilities. These measures were necessary to make Domtar an even stronger company. They also reflect our commitment to our customers and stakeholders to be the most efficient producer in
In total, approximately 625 employees at these facilities will be affected by these decisions. In accordance with its values and policies, Domtar will take appropriate measures to assist affected employees.