|
| |
| |
|
| |
| |
| |
 |
| Domtar chief executive John D. Williams. THE CANADIAN PRESS/Ryan Remiorz/ file |
MONTREAL - Domtar Corp. (TSX:UFS) says it is shutting down paper output but converting its Plymouth, N.C. mill to fluff pulp production, a move that will cut 170 jobs but secure the mill’s future for a growing export market.
Domtar announced Tuesday it is investing $73.5 million to help triple capacity of fluff pulp, which is used in making baby diapers and other absorbent products.
The mill changes will increased capacity to 444,000 tonnes of fluff pulp and will be completed in the fourth quarter of 2010.
Domtar said the mill reconfiguration will also lead to the permanent shutdown of Plymouth’s remaining paper output, reducing the company’s annual uncoated freesheet production capacity by about 200,000 tons.
The freesheet paper is used in copy paper for printers, fax machines and copiers, magazines, books and other publications. Those sectors have been in decline and demand for paper is weakening.
The company said the changes will help preserve about 360 positions at the North Carolina mill, but 170 positions will be lost at the operation, which currently employs 530 people.
"We are refocusing Plymouth’s operations to capitalize on its competitive strengths," John Williams, president and chief executive of Domtar, said in a release.
"As an experienced fluff pulp manufacturer with an established presence in a growing market, we can expand our capabilities with confidence. Plymouth is well-positioned geographically with ready access to export markets through ocean ports as well as competitively-priced fibre ideally suited for the manufacture of premium quality fluff pulp."
As for the paper shutdown, Williams said the move will make that side of Domtar’s operation more efficient.
"The redirection of orders to other paper mills in our system will help bring up operating rates and lower manufacturing costs. Upon completion, Plymouth will become a world-class fluff pulp operation with direct access to a dynamic export market," he said.
Fluff pulp is bleached softwood cellulose fibre used worldwide in baby diapers, feminine hygiene and adult incontinence products.
Domtar, with 10,500 employees, is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity. The company also makes papergrade, fluff and specialty pulp as well as lumber and other specialty and industrial wood products.
Domtar shares closed down $1.95 to $43.80, a drop of 4.3 per cent, on Tuesday.
Top of Page
|
|
|
