Domtar to Permanently Shut Down One Pulp Machine at Its Kamloops Mill

Domtar plans to shut down the "A-Line" at its Kamloops pulp mill by the end of March 2013.

Dec. 14, 2012 - Domtar said that it will permanently shut down one pulp machine at its Kamloops, British Columbia (Canada) facility, which will result in a permanent curtailment of Domtar's annual pulp production by approximately 120,000 air-dried metric tons of sawdust softwood pulp.

The pulp machine, known at the mill as the "A-Line" is expected to be closed by the end of March 2013. About 125 employees will be affected by the decision.

"Prevailing economic conditions in the global pulp markets and the deteriorated competitiveness of this small pulp manufacturing line, coupled with unforeseen boiler repair costs, have forced us to rationalize this pulp production capacity," explained Mike Edwards, Senior Vice-President, Pulp and Paper Manufacturing. "We will focus our energy and resources on optimizing the larger, more competitive, 'B' pulp manufacturing line which will continue to operate."

"Employees affected by this change have earned our appreciation and we thank them for their contributions to the Kamloops Mill," Edwards added.

Domtar said the Kamloops pulp operation will continue to operate its remaining pulp manufacturing line with an annual capacity of approximately 350,000 air-dried metric tons of softwood kraft pulp and employ approximately 300 people.

Domtar said that it will take appropriate measures to assist employees affected by this decision in accordance with the collective agreement, Domtar policy and legislation.

Domtar Corporation designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America. Domtar is also a leading marketer and producer of a complete line of incontinence care products marketed primarily under the Attends brand name. Domtar owns and operates Ariva, an extensive network of strategically located paper and printing supplies distribution facilities.

SOURCE: Domtar