Domtar will permanently shut down one pulp machine at its Kamloops, B.C., facility, putting 125 employees out of work and curtailing 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.
“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. We will focus our energy and resources on optimizing the larger, more competitive, 'B' pulp manufacturing line which will continue to operate," said Mike Edwards, senior vice-president, pulp and paper manufacturing.
Domtar spokesperson Bonnie Skene told the Kamloops Daily News that problems with a key boiler for the A-line were discovered during the fall maintenance shutdown, and were a contributing factor in the closure.
The mill’s B-line has an annual capacity of approximately 350,000 air-dried metric tons of softwood kraft pulp and employ approximately 300 people.
Domtar Corporation (NYSE: UFS) (TSX: UFS) 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 with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. 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 ArivaTM, an extensive network of strategically located paper and printing supplies distribution facilities. In 2011, Domtar had sales of US$5.6 billion from nearly 50 countries. The Company employs approximately 9,300 people. To learn more, visit www.domtar.com.
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