Domtar Declares Closure of Paper Machines at Ashdown, Port Huron Paper Mills

SEATTLE (Scrap Monster): Domtar Corporation announced shutdown of its two paper machines. The company plans to close paper machine at Ashdown, Arkansas pulp and paper mill with immediate effect and the one at Port Huron, Michigan paper mill by mid-November this year.

The closure of the two paper machines is expected to reduce the paper making capacity of uncoated freesheet paper by approximately 204,000 short tons. Also, the closure is likely to impact nearly 100 employees.

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John D. Williams, President and Chief Executive Officer of Domtar thanked the mill employees for their hard work and contribution to the company over the past several years. The decision to shut down the paper machines was difficult, but was a necessity on account of sharply declining uncoated freesheet paper market. Further, he hoped that the company would be able to offer high quality products and exceptional service to its customers as before.

Further to closure, Ashdown mill will have one paper machine in operation. It will employ nearly 725 people and produce around 200,000 short tons of uncoated freesheet paper per annum. Meantime, Port Huron mill, will operate three machines with a combined annual production capacity of 95,000 short tons of technical and specialty papers. The employee strength at the mill will be reduced to 212, said the company press release.