Shock felt across region
ESPANOLA—Shock, disbelief and heartbreak are three of the words that employees, local, provincial and federal politicians used to describe the announcement last week that Domtar Corporation, a part of the Paper Excellence Group would indefinitely idle the pulp and paper operations of its Espanola facility for an expected period greater than one year.
“It is devastating,” stated Espanola Mayor Doug Gervais. “No, I had no inkling this announcement was going to be made,” he said, explaining that he found out when he received a call from the Ontario minister of natural resources. “He was calling to give us support for what we were going through. When the minister called I was in a parking lot in Sudbury starting to drive home when I got the news at about 11:20-11:25 in the morning.”
He told the Expositor on Thursday, “we had a meeting with Domtar officials this morning and they were very apologetic.”
The news “is shocking,” stated Mayor Gervais, who said with 450 employees and their families, it is not only Espanola that is being affected. “There is a large percentage of people who work here that are from out of town, on the North Shore and Manitoulin, for instance. There are a significant number of employees that drive in to work.”
“The number one priority is the employees and making sure that they receive support from the company,” said Mayor Gervais. “Definitely, the company said has said they will do the best they can to help and all the support they can. They have indicated they want to take care of the employees.”
Mayor Gervais had released a statement after the announcement on September 6 stating: “It is with heavy hearts that the Town of Espanola has learned of the Domtar Corporation’s announcement to indefinitely idle the pulp and paper operations at its Espanola facility. The workers and families of the pulp and paper industry have been the lifeblood of Espanola since the turn of the 20th century. The town will be advocating to all levels of government in support of our community. As we learn more over the coming days and weeks, the town will do everything it can to help the workers and families impacted and the community at large.”
Espanola councillor Aidan Kallioinen said, “I think, like many people in the community, the announcement came as a huge surprise to me. My heart sank yesterday morning when I heard the news,” he said, noting his father had worked for the company for a number of years. “We knew that the company had been struggling financially for years. And we have seen time and again in other communities the loss of forest industry businesses struggling and the employees and community bearing the consequences.”
“This is very devastating for a lot of people,” stated Councillor Kallioinen. “We are talking about 450 employees, their families, students, small business providers that count on the products they provided. It is going to be a very difficult time ahead. People will be looking at the municipal government as a guide and we will stand with them in the process.”
“The Espanola mill has been challenged for some time now,” said Steve Henry, Domtar paper and packaging president. “We have worked diligently to find a viable path forward for the operation including offering it for sale. Employees affected by this change have earned our appreciation and we thank them for their contributions. We also want to thank federal and provincial officials for their efforts.”
“The mill will be idled after years of ongoing losses and high costs associated with maintaining and operating the facility,” said Mr. Henry. The pulp mill will shut down in early October and the paper machines will shut down by early November.”
Mr. Henry said, “Domtar will take appropriate measures to assist employees affected by this decision in accordance with the collective agreement, Domtar policy and legislation. The mill will be idled in a safe and environmentally sound manner that will facilitate a possible sale or future restart.”
Bonny Skene, regional public affairs manager for Domtar told The Expositor, “This is a very, very heavy day for all of us. It’s no secret the Espanola facility has been facing challenges for some time. A decision like this is shocking. It can’t help but be that.”
“The company has been working very hard in the past few years to remain viable,” said Ms. Skene, who added, “the decision has been made due to the operating losses and the high cost of running the facility.”
“The mill will be idled in an environmentally safe way and, if by chance there is an interested party that chooses to purchase the business or reopen it in the future this is possible,” said Ms. Skene. She told The Expositor Domtar has been offered for sale for over a year. “I can’t say what the level of interest there has been but none of the interest in purchasing it has come to fruition.”
Michael Mantha, MPP for Algoma-Manitoulin said, “it is devastating to hear that Domtar will be idling operations. It is heavy news for the workers, their families and the community who will be impacted by this decision.”
“Moving forward, I am calling on both the provincial and federal governments to be at the table to address the factors which have led to the facility being idled. Protecting and promoting good paying, stable jobs in the North should be a priority for all elected officials,” said MPP Mantha.
Carol Hughes, MP for Algoma-Manitoulin-Kapuskasing said she was shocked and saddened to learn that the Domtar pulp and paper mill was idling indefinitely and for a minimum of one year. MP Hughes reached out to Ms. Skene to see if any government assistance could help in averting the closure.
“This is a sombre day for workers, their families, the Town of Espanola and surrounding communities,” said MP Hughes. “Once you lay off workers, the chance of being able to rehire them becomes more challenging as those experienced professionals move on with their careers elsewhere.”
“I think we were all in shock and disappointed when we heard the announcement,” said MP Hughes. “This is going to impact the workers, families and Espanola and surrounding areas and others in the forest sector industry. It will have a ripple effect.”
“Based on the conversations I’ve had with company representatives, the company has been losing money for some time,” said MP Hughes. “I’ve asked them if there is anything the governments can do to assist them. The federal and provincial governments provided substantial funding to the company, but they don’t see a way to sustain the operations.”
“There’s always hope for communities dealing with company closures,” said MP Hughes. “White River experienced this a few years ago when the lumber mill ceased operations. They were able to eventually bounce back, but it was an exceptionally difficult process to rebuild their work force.”
MP Hughes was advised that Domtar was appreciative of past investments they had received, but that no government assistance could help to address the current situation. “I am disheartened by what these workers and their families will be going through, and I encourage them to reach out to my office should they require assistance with benefits they may need to access.”
Leanne St. Pierre, who is originally from Little Current and now lives in Espanola told The Expositor, “I was in disbelief. I have been with Domtar for 33 years in November and have two years to retire.”
Ms. St. Pierre, who worked in the paper mill in the finishing room told The Expositor that she had no idea the decision was going to be announced. “No, not at all, not even close. I live on a street where four of us work at Domtar and three of us are in the final years of our career. I haven’t heard from anyone. A neighbour had told me about the announcement.”
“I will survive and get through this,” said Ms. St. Pierre who noted that 28 years ago, “Everything was on the chopping block then and things worked out. I don’t know if the company is going to offer severance benefit packages. I don’t know. We just signed a good contract recently. There are lots of very good questions that need to be answered.”
Jerry Logan, a national union representative with Unifor, told CBC News the union did not see the announcement coming. He said while the plant was up for sale for the past few years, the prospect of shutting down the mill didn’t come up in recent contract talks. “My initial response to all of this is kind of heartbroken.”
“Our understanding is we will maintain a skeleton crew to keep the electricity running and the equipment ready for a startup,” Mr. Logan told CBC. “And obviously, Unifor’s position will be to get this mill restarted as soon as possible.”
Chris Presley, the president of Unifor Local 74 told Northern Ontario Business the move could cripple the community. The Espanola mill has been up for sale since late last year, just before a ruling by the Canadian Competition Bureau to resolve concerns related to Domtar’s acquisition of Resolute Forest Products and its strengthened hold on pulp production in Central and Eastern Canada.
Joe Cooper of Manitowaning worked for almost 35 years with Domtar in different management positions, retiring in 2020. “It’s heartbreaking, but I was not surprised or shocked. It needed a large investment. The pulp and paper industry is capital intensive.”
“I think it’s due to the quality of the employees that the operation lasted this long,” said Mr. Cooper, noting the business started in 1905. “This is one of the last pulp and paper mills in Ontario. In Ontario there were 20 mills at one time and now this is down to four. And manufacturing and energy costs have gone up so much, while demand for the product has dropped. It is a different world we are living in.”
Domtar employed 450 people and workers produced approximately 280,000 air-dried metric tons of northern bleached softwood kraft pulp and 69,000 tons of specialty paper annually.
