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Domtar to Idle Maine Pulp Mill in May

March 5, 2009 - Domtar today said that it will be idling its Woodland pulp mill in Baileyville, Maine for an undetermined period, as of May 5, 2009. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons.

Approximately 300 employees will be affected by the shutdown, Domtar said.

"Current worldwide economic conditions with weaker global demand for pulp, historically high inventory levels and depressed prices make it extremely challenging for northern hardwood pulp mills to compete," said said John D. Williams, president and CEO of Domtar. "With no immediate recovery in sight, we must temporarily reduce our pulp manufacturing capacity."

Domtar said that it is committed to working with Maine State Governor, John E. Baldacci, and his administration, to explore steps that can be taken to mitigate the impact of this announcement.

SOURCE: Domtar




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