Domtar Corporation has announced today that it will indefinitely idle the pulp and paper operations at its Espanola facility for an expected period greater than one year.
Officials say 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.”
Officials say the mill will be idled after “years of ongoing losses and high costs associated with maintaining and operating the facility”, adding the pulp mill will shut down in early October and the paper machines will shut down in early November.
In a release, the company shared it will take appropriate measures to assist employees affected by the 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,” it reads.
Domtar Corporation is a part of the Paper Excellence Group.