Domtar Corporation, a part of the Paper Excellence Group, announced it will indefinitely idle the pulp and paper operations at its Espanola, Ontario, Canada, facility for an expected period greater than one year.
The decision will result in a curtailment of Domtar’s annual pulp production by approximately 280,000 air-dried metric tons of northern bleached softwood kraft pulp and approximately 69,000 tons of specialty paper. The announcement will affect approximately 450 employees.
The mill will be idled after years of ongoing operating losses and high costs associated with maintaining and operating the facility. The pulp mill will shut down in early October and the paper machines will shut down by early November.
Domtar will take appropriate measures to assist employees affected by this decision in accordance with the collective agreement, Domtar policy and legislation. The mill will be idled in a safe and environmentally sound manner that will facilitate a possible sale or future restart.
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens.
