Domtar to Close Wisconsin Mill, Cut 500 Jobs
Montreal-based Domtar, the largest producer of uncoated free-sheet paper in North America and the second largest in the world, announced yesterday that it will close its mill in Port Edwards, Wisc. in about six months, eliminating 500 jobs in the process. The company also announced it will reorganize production operations at its Dryden, Ontario facility.
“We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers,” said Raymond Royer, president and chief executive officer of Domtar. “In spite of years of sustained efforts from our dedicated employees as well as from the company, high costs posed significant challenges to these facilities. These measures were necessary to make Domtar an even stronger company. They also reflect our commitment to our customers and stakeholders to be the most efficient producer in North America,” added Mr. Royer.
In total, 625 employees’ jobs are expected to be lost by the moves at the two mills, and Domtar says it will “take appropriate measures to assist affected employees.”