Domtar to Retire Pulp Machine at Kamloops Mill

Domtar Corp., Montreal, Que., Canada, reports that it will permanently shut down one pulp machine at its Kamloops, B.C., Canada facility. The decision will result in a permanent curtailment of Domtar's annual pulp production by approximately 120,000 air-dried metric tons of sawdust softwood pulp and will affect approximately 125 employees.

The pulp machine, known at the mill as the "A-Line," is expected to be closed by the end of March.

"Prevailing economic conditions in the global pulp markets and the deteriorated competitiveness of this small pulp manufacturing line, coupled with unforeseen boiler repair costs, have forced us to rationalize this pulp production capacity. We will focus our energy and resources on optimizing the larger, more competitive 'B' pulp manufacturing line, which will continue to operate," said Mike Edwards, SVP, Pulp and Paper Manufacturing. "Employees affected by this change have earned our appreciation and we thank them for their contributions to the Kamloops Mill."

The Kamloops pulp operation will continue to operate its remaining pulp manufacturing line with an annual capacity of some 350,000 air-dried metric tons of softwood kraft pulp, and approximately 300 employees.

Domtar says it will take appropriate measures to assist employees affected by this decision in accordance with the collective agreement, Domtar policy, and legislation.

Domtar produces a wide variety of fiber-based products, including communication papers, specialty and packaging papers, and adult incontinence products. The foundation of its business is a network of wood fiber converting assets that produce paper grade, fluff, and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America.

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