Domtar to Permanently Shut Dryden Paper Machine

Nov. 5, 2008 - Domtar late yesterday said that it will permanently shut down the paper machine (PM 1) and converting operations of its Dryden, Ontario mill in Canada, resulting in a permanent capacity reduction of approximately 151,000 short tons of uncoated freesheet paper.

Dryden papermaking and converting operations are expected to cease by mid-November 2008, Domtar said.

About 195 employees will be affected by the closure.

"Given adverse economic conditions and the continued softening of demand for fine papers, we need to further reduce our production capacity," said Raymond Royer, president and CEO of Domtar. "The mill's relative cost position and the need to maintain a balance in Domtar's supply and demand system have made this difficult decision necessary.

"This announcement also reflects our strong commitment to our customers and other stakeholders to be the most efficient producer in North America. Dryden papermaking employees have made commendable efforts over the last several years in trying to meet these challenges and I want to thank them for their dedication," Royer said.

Dryden's pulp production and related forestland activities will remain in operation, Domtar said.

Dryden has one pulp line with an annual production capacity of 319,000 air dry metric tons.

In December 2007, Domtar permanently shutdown Dryden's PM #2, which had a production capacity of 332,000 tons of uncoated freesheet.

Domtar said that it will take appropriate measures to assist employees affected by these decisions.

SOURCE: Domtar Corp.

See related story:
»   Domtar to Shut Port Edwards Mill, Rework Dryden Mill (12/13/07)

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