Domtar Corporation will permanently close its coated groundwood paper mill in Columbus, Mississippi, and exit …
Domtar Corporation will permanently close its coated groundwood paper mill in Columbus, Mississippi, and exit the coated groundwood paper business.
The Columbus facility has an annual production capacity of 238,000 tons of coated groundwood and 70,000 metric tons of thermomechanical pulp. The mill currently has 219 employees. Operations are expected to cease by the end of April 2010.
“Market conditions for coated groundwood paper are challenging and despite the best efforts of our employees — and these efforts have been commendable — the mill continues to suffer from a weak cost position,” said John D. Williams, president and CEO of Domtar. “With this permanent closure, Domtar is exiting the coated groundwood paper business.”
Domtar also announced the sale of its Choctaw, Saturn, and Jupiter coated groundwood product lines and trademarks to NewPage Corporation. The sale to NewPage also includes the mill’s paper inventory and book of business. Domtar intends to dismantle and dispose of remaining assets as deemed appropriate.
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