March 5, 2009 / 1:57 PM / in 9 years

Domtar idles Woodland mill, affects 300 jobs

OTTAWA (Reuters) - Canadian forestry firm Domtar Corp said on Thursday it will idle its Woodland pulp mill in Baileyville, Maine, for an indefinite period, affecting 300 employees.

It is the latest in a string of production and job cuts for Domtar, which is trying to cut costs as an economic downturn hampers demand for its products.

The Woodland mill, which will close on May 5, has an annual hardwood pulp production capacity of 398,000 air dry metric tons.

“Current worldwide economic conditions with weaker global demand for pulp, historically high inventory levels and depressed prices make it extremely challenging for northern hardwood pulp mills to compete,” said Chief Executive John Williams in a statement.

There is “no immediate recovery in sight”, he added.

Montreal-based Domtar, which mainly sells office paper, said in early February that it planned further measures to cut costs, including a salary freeze and reduction in non-essential spending.

Reporting by Susan Taylor, editing by Dave Zimmerman

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