Domtar Inc. has decided to close down one of its two paper machines at its Vancouver mill. In announcing the closure the company said the move was being down to meet customer needs and increase the mill’s profitability. The shutdown of the machine will reduce production capacity at the mill by 45,000 tons.
The company also said that it is restructuring the activities of the second paper machine to boost the quality of its coated paper produced at the mill.
The Vancouver Mill produces about 120,000 tons annually of Domtar Luna coated paper on paper machine no.2. In addition, various products like business reply cards are manufactured on paper machine no.1.
However, the machine does not have a core product and it lacks flexibility, which substantially limits the ability to optimize its product line. By permanently shutting down this machine, Domtar will be transfering some products developed with specific customers to other mills, while other products will be discontinued. This will enable the Company to better serve its customers and reduce costs at the same time.Latest from Recycling Today
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