Domtar Plans to Idle Woodland Pulp Mill in Maine

Domtar Corp., Montreal, has announced it will idle its Woodland pulp facility in Baileyville, Maine for an undetermined period as of May 5, 2009. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons. Approximately 300 employees will be affected by this announcement.

“Current worldwide economic conditions with weaker global demand for pulp, historically high inventory levels and depressed prices make it extremely challenging for northern hardwood pulp mills to compete,” says John D. Williams, president and CEO of Domtar. “With no immediate recovery in sight, we must temporarily reduce our pulp manufacturing capacity.”

Domtar says it is committed to working with Maine State Gov. John E. Baldacci and his administration to explore steps that can be taken to mitigate the impact of this announcement.