Tembec and Domtar restructure Ontario mills
January 4, 2005 By Pulp & Paper Canada
Domtar and Tembec are joining forces to restructure their Northeastern Ontario sawmill operations. Consequently, Do…
Domtar and Tembec are joining forces to restructure their Northeastern Ontario sawmill operations. Consequently, Domtar will permanently close its sawmill located in Chapleau on March 6th, 2005. The boiler and kiln facilities at the facility will be sold to Tembec, permitting the company to process the increased lumber output of its neighboring operation with fibre volumes historically associated with the Domtar Chapleau sawmill.
Despite the opportunity for job creation due to the increased output at the Tembec mill, 67 jobs will be lost as a result of the sawmill’s closure. Write-off and closure costs will total roughly $14 million.
On a positive note, Domtar has confirmed it will be adding a third shift at its Elk Lake Facility, which will create 56 additional jobs. Tembec’s hearst mill will also add a third shift, upping the number of employees from 165 to 202.
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