Domtar Nears Decision on Converting Quebec Mill to Containerboard

SEATTLE (Scrap Monster): Domtar appears close to making a final decision about whether to convert its newsprint mill in Gatineau, Quebec, to a containerboard mill, following the end of labor negotiations with Canadian union Unifor. According to the union, negotiations were successful and the agreement involves Domtar proceeding with the facility conversion.

South Carolina-based Domtar, formerly known as Paper Excellence Group, confirmed via email that the Gatineau mill conversion is “under review,” but it declined to share additional details. 

Domtar’s website says its “entry into the packaging business began with the decision in 2020 to convert our Kingsport, Tennessee, paper mill to manufacture packaging materials,” and the facility now has an annual capacity to produce approximately 600,000 tons of recycled linerboard and corrugated medium. “We don’t own or operate box plants, sheet plants or sheetfeeders,” according to the site.

Last week, the union concluded labor negotiations with Domtar regarding the Gatineau site, and the final contract will likely be published by month’s end, said Daniel Cloutier, Unifor Quebec director. As part of the labor arrangement, Unifor members, which account for roughly two-thirds of the mill’s employees, agreed not to bargain, lock out or strike for eight years — on the condition that Domtar would move forward with the mill conversion, Cloutier said.

Domtar agreed to proceed with the mill conversion investment, Cloutier said, although the company has not issued a final decision. Unifor anticipates that should come by autumn, if not earlier. 

The labor contract is for a four-year term that would automatically renew for another four-year term if Domtar’s investment is a go, Cloutier said. It also will include language about employee pay increases and the ability to discuss non-monetary matters that might arise. The eight-year time frame for no labor action would ensure Domtar has adequate time for facility construction and production startup, according to Cloutier.

“Domtar told us that they are close to a decision making, and one thing that could help them to make that decision was the guarantee that they will have no conflicts at [the] Gatineau plant while they proceed with the construction of the new facility — and also before everything is ready,” he said.

Courtesy: www.packagingdive.com