Pulp and paper producer blames global economic conditions and weak demand for shut down.
MONTREAL—Domtar Corp. will permanently shut down one pulp machine at its Kamloops, BC facility, a move that will result in a permanent curtailment of the company’s annual pulp production by approximately 120,000 air-dried metric tons of sawdust softwood pulp and affect approximately 125 employees.
The pulp machine, known at the mill as the “A-Line” is expected to be closed by the end of March 2013.
“Prevailing economic conditions in the global pulp markets and the deteriorated competitiveness of this small pulp manufacturing line, coupled with unforeseen boiler repair costs, have forced us to rationalize this pulp production capacity. We will focus our energy and resources on optimizing the larger, more competitive, ‘B’ pulp manufacturing line which will continue to operate,” said Mike Edwards, Senior Vice-President, Pulp and Paper Manufacturing.
The Kamloops pulp operation will continue to operate its remaining pulp manufacturing line with an annual capacity of approximately 350,000 air-dried metric tons of softwood kraft pulp and employ approximately 300 people.