Domtar to Idle Coosa Pines Pulp Mill on Weak Demand, Cost Pressures

It operates one pulp dryer and employs approximately 275 workers.

SEATTLE (Scrap Monster): Domtar Corporation has announced plans to indefinitely idle operations at its Coosa Pines, Alabama fluff pulp mill starting May 2026, citing rising costs and challenging market conditions. The company confirmed it is preparing a safe and orderly wind-down of production at the facility.

Located along the Coosa River, the mill began operations in 1950 as a joint venture involving Kimberly-Clark and newspaper publishers. Initially focused on newsprint production for the Southeastern United States, the site expanded into fluff pulp manufacturing in 1976 with the addition of a kraft line, recovery boiler, and pulp dryer.

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The facility currently produces fluff (kraft) pulp used in tissue and absorbent hygiene products, with an annual capacity of 270,000 metric tons. It operates one pulp dryer and employs approximately 275 workers.

Domtar attributed the shutdown decision to aging infrastructure and increased maintenance and operating costs. The company said it will offer employees career transition support, benefits guidance, and continued communication throughout the closure process.

Separately, Domtar has engaged Moelis & Company to explore financing options as it faces persistent negative free cash flow, declining paper demand, elevated capital expenditures, and ongoing pension obligations.