Domtar Reducing Paper Manufacturing Capacity

MONTREAL—Domtar Corp. announced it is permanently closing its paper mill in Gatineau, Quebec and a converting center in Ottawa. The company is also shutting down paper machines at its Woodland mill in Baileyville, ME, and Port Edwards, WI, mill. The moves stem from a review of Domtar’s overall production capacity.

The company cited excess capacity and cost competitiveness as the primary motivations behind the reductions. Further rationalization may be implemented in the near future, according to Raymond Royer, Domtar president and CEO.

Roughly 150 jobs will be lost at the Woodland mill and the Port Edwards action will result in a head count reduction of 30.