Domtar Declares Temporary Idling of Hawesville, Kentucky Mill

SEATTLE (Scrap Monster): Domtar Corporation provided update on plans to reduce its production capacity so as to maintain right balance with the reduced demand situation on account of the Covid-19 pandemic crisis.

According to company press release, it plans to temporarily idle the operations of its Hawesville, Kentucky mill effective 5^th May, 2020. The production of H1 paper machine will restart in the month of June this year. Meantime, the H2 paper machine will continue to remain idle until July 2020.

The temporary shutdown is expected to lead to layoff of around 400 employees at the mill. Furthermore, it will reduce Domtar’s uncoated freesheet paper production capacity by nearly 83,000 short tons. The company had recently announced idling of its Kingsport, Tennessee, mill and the A62 paper machine at its Ashdown, Arkansas mill, which are expected to reduce production capacity by nearly 227,000 short tons of uncoated freesheet paper.

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John D. Williams, President and Chief Executive Officer noted that additional idling of operations have become necessary in light of reduced paper demand. The company will do everything possible help to impacted employees and their families. He expressed full confidence in the long-term strength and viability of its paper mills. All of the company’s other facilities continue to operate without disruptions, Williams added.