Approximately 450 employees will be laid off as a result
ESPANOLA—Domtar Corporation, a part of the Paper Excellence Group, announced Wednesday it will indefinitely idle the pulp and paper operations at its Espanola facility for an expected period greater than one year.
The decision will result in a curtailment of Domtar’s annual pulp production by approximately 280,000 air-dried metric tons of northern bleached softwood craft pulp and approximately 69,000 tons of specialty paper. The announcement will affect approximately 450 employees.
“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 operating losses and high costs associated with maintaining and operating the facility. The pulp mill will shut down in early October and the paper machines will shut down by early November.
“It is devastating to hear that Domtar will be idling operations by early November this year,” said Algoma-Manitoulin MPP Michael Mantha. “It is heavy news for the workers, their families and the community who will be impacted by this decision.”
“I have already been in contact with Ontario’s Minister Labour, Minister of Natural Resources and Forestry and have reached out to the Minister of Colleges and Universities to highlight the impacts that this will have on the community and our region,” the MPP continued. “In the coming weeks I hope to work with them, their federal counterparts, and impacted stakeholders to mitigate any concerns in the community.”
“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,” said MPP Mantha. “Protecting and promoting good paying, stable jobs in the North should be a priority for all elected officials.”
Domtar says it 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.
