Domtar Investing $20 million to Upgrade Hawesville, Ky., Mill

Domtar Paper Co., Montreal, Que., Canada, plans to upgrade and add equipment at its Hawesville, Ky., USA, facility, retaining 452 jobs and investing up to $20 million in capital improvements. Domtar operates 13 mills worldwide, including the Hawesville Mill. The mill produces approximately 80,000 tpy of market hardwood pulp and about 600,000 tpy of printing grade paper.

The company plans to upgrade existing equipment and invest up to $10 million to construct a new conveyor system that will allow Domtar to transport its product directly between the plant and the nearby Ohio River. The system is expected to lower operating expenses, reduce greenhouse gases, and help retain the existing 452 jobs at the facility.

"Domtar is excited to make this significant investment at our Hawesville facility," said Hawesville Mill GM Steve Henry. "This investment will benefit the environment, our community, and the long-term competitiveness of our facility."

To encourage the investment in Hancock County (where the mill is located), the Kentucky Economic Development Finance Authority preliminarily approved Domtar for tax incentives up to $290,000 through the Kentucky Reinvestment Act (KRA). KRA is designed to assist companies that need to make significant capital investment in Kentucky facilities to remain competitive.

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