Pulp and Paper Canada

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Domtar makes major cuts


November 30, 2005
By Pulp & Paper Canada

Domtar is initiating an exhaustive series of closures and sales in an aim to return to profitability.

Domtar is initiating an exhaustive series of closures and sales in an aim to return to profitability.

The Cornwall, ON mill will be shut down permanently. The facility was partially, though indefinitely, closed in 2004. A total of 910 jobs will be cut through this closure, however, 390 of those positions were eliminated when the pulp mill, PM 6 and one sheeter were idled last December. The papermachine in Hull, which makes up part of the Hull/Ottawa complex will remain in operation.

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The Ottawa, ON mill will lose its PM 10 and PM11 at the end of March of this year, at which point 185 positions will be eliminated. The sawmills at Grand Remous and Malartic, QC will both be closed, and the company will be selling its mill in Vancouver, BC.

An additional 100 corporate and divisional jobs will be cut, on top of another 200 operational positions at the mill level. In all, the company will be reducing its workforce by 1,800 people.

“The strengthening of the Canadian dollar has pushed some of our Canadian mills to negative cash flow generation, and we must focus on our most efficient mills in order to return to profitability,” said Richard Garneau, executive vice president of operations.

President and CEO Raymond Royer said of the decision, “mill closures are very difficult decisions to make, since they impact our employees, their families and the communities where we operate.”


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