Domtar to Idle Tennessee Mill for Three Months

SEATTLE (Scrap Monster): Domtar Corporation announced temporary idling of paper capacity in response to unforeseen impacts on its business due to the outbreak of coronavirus pandemic.

According to company press release, it will idle the operations at its Kingsport, Tennessee mill for a period of three months. In addition, the A62 paper machine at its Ashdown, Arkansas mill will remain out of operation for a similar period. This in turn will result in lay off of approximately 304 employees at Kingsport mill and 142 employees at Ashdown mill.

The above actions are expected to reduce the company’s uncoated freesheet paper production capacity by approximately 144,000 short tons over the period of three months. Meantime, the company noted that all of its other facilities will continue to remain fully operational, without any disruption to shipments.

John D. Williams, President and Chief Executive Officer noted that the ongoing closure of offices, businesses and schools has had negative impact on overall demand for communication paper. The paper capacity shutdowns are aimed at optimizing the mill operations. The company will extend all possible support to affected employees and their families, Williams added.

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