Domtar to Permanently Close Columbus, MS Coated Groundwood Paper Mill
March 16, 2010 - Domtar announced today that it will permanently close its coated groundwood paper mill in Columbus, Mississippi. The Domtar coated groundwood paper mill has an annual production capacity of 238,000 tons of coated groundwood and 70,000 metric tons of thermo-mechanical pulp.
The mill currently has 219 employees.
Operations are expected to cease by the end of April 2010, Domtar said.
"Market conditions for coated groundwood paper are challenging and despite the best efforts of our employees – and these efforts have been commendable – the mill continues to suffer from a weak cost position," said John D. Williams, president and CEO of Domtar.
"With this permanent closure, Domtar is exiting the coated groundwood paper business," he added.
Domtar also announced the sale of its Choctaw®, Saturn® and Jupiter™ coated groundwood product lines and trademarks to NewPage Corporation.
The sale to NewPage also includes the mill's paper inventory and book of business, Domtar noted.
Domtar said that it intends to dismantle and dispose of remaining assets as deemed appropriate.
The company said it will take measures to assist employees affected by these decisions in accordance with its policies.
SOURCE: Domtar Corp.