Domtar Corporation, a member of the Paper Excellence Group, has announced the indefinite suspension of pulp and paper operations at its Espanola, Ontario facility, with the expected duration of this suspension exceeding one year.
This decision will lead to a reduction in Domtar's annual pulp production, with approximately 280,000 air-dried metric tons of northern bleached softwood kraft pulp and around 69,000 tons of specialty paper being curtailed. The announcement will have an impact on approximately 450 employees.
Steve Henry, President of Domtar's paper and packaging division, remarked, "The Espanola mill has faced ongoing challenges. We have made sincere efforts to find a sustainable path forward for the operation, including exploring its sale. We extend our gratitude to the affected employees for their contributions and express our appreciation for their dedication. We also want to acknowledge the efforts of federal and provincial officials."
The mill's suspension comes after enduring years of continuous operating losses and substantial costs linked to its maintenance and operation. The pulp mill will cease operations in early October, followed by the shutdown of the paper machines by early November.
Domtar is committed to taking appropriate measures to assist the impacted employees in line with the collective agreement, Domtar's policies, and relevant legislation. The mill's suspension will be executed in a safe and environmentally responsible manner, thereby facilitating the potential for a future sale or restart.