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Domtar Permanently Closing Lebel-sur-Quévillon Pulp Mill

Dec. 19, 2008 - Domtar said that it is permanently closing its idled Lebel-sur-Quévillon, Quebec pulp mill. Operations at the mill were stopped on November 24, 2005 due to unfavorable economic conditions.

The pulp mill had an annual production capacity of 300,000 tons of softwood kraft pulp and employed some 425 workers.

The company said the permanent closing of the mill comes after all other solutions have been considered in the last three years and as the global pulp market now faces deteriorating conditions, therefore putting an end to any expectation to re-launch a profitable operation at Lebel-sur-Quévillon.

Domtar said it continues to closely monitor inventory levels and manage working capital by balancing production with its customer demand. As a result, the company will have curtailed production through lack-of-order downtime and slowdowns that are estimated to total 44,000 tons of pulp and approximately 173,000 tons of paper in the fourth quarter of 2008.

SOURCE: Domtar Corp.




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