Domtar Inc. has announced plans to sharply reduce its operations as it seeks ways to return to profitability. The cuts include the closing of paper mills and saw mills, the idling of machines, and the sale of some other operations.
The company announced it is permanently closing its Cornwall, Ontario paperboard mill, effective March 31, 2006. Total production capacity of 265,000 tons of uncoated and coated printing paper on three paper machines, as well as 160,000 tons of pulp, which will be eliminated from the market.
The company also is permanently closing two of its paper machines at its non-integrated operations. These closures also will become effective March 31, 2006. Around 65,000 tons of paper capacity will be removed from the market when this closure occurs.
The company also announced that it is looking to sell its Vancouver, BC coated paper mill. The mill produces around 120,000 tons of coated paper a year. The mill will continue to operate as the company seeks out a buyer.
Along with these closures, the company will be shutting down several sawmill operations in eastern Canada. The two sawmills are at Grand Remous and Malartic, Quebec.