Domtar Announces Temporary Idling of Paper Capacity to Address COVID-19 Related Business Impact
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Domtar Corporation (NYSE: UFS) (TSX: UFS) announced that it will temporarily idle the operations of its Kingsport, Tennessee mill and the A62 paper machine at its Ashdown, Arkansas mill for three months in response to the unforeseeable business conditions driven by the COVID-19 pandemic.
The temporary shutdown will reduce Domtar’s uncoated freesheet paper production capacity by approximately 144,000 short tons over the three months’ period. As a result, Domtar will lay off approximately 304 employees at its Kingsport mill and 142 employees at its Ashdown mill.
“The COVID-19 pandemic is having a negative impact on communication paper demand, with offices, businesses and schools still closed in a large part of our markets,” said John D. Williams, President and Chief Executive Officer. “Given the evolving market conditions, we are taking the appropriate steps to optimize our operations, which will ensure that we remain an agile, reliable partner to our customers. We regret the impact these temporary shutdowns will have on our Kingsport and Ashdown employees and their families, and we are doing everything we can to support them during this time.”
Domtar’s other facilities remain fully operational and continue to ship products to all states and provinces without disruption. Domtar is committed to operating its business as efficiently as possible in order to meet the needs of its customers, while maintaining the health and safety of its employees.
For more details on how Domtar is responding to the COVID-19 pandemic, please visit the Business Continuity section of Domtar’s website.
