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Domtar to Slash 1,800 Jobs, Close Mills

Domtar Inc. will eliminate 1,800 jobs and close several mills as part of a cost-saving plan announced yesterday by the Montreal-based paper company.

“The strengthening of the Canadian dollar has pushed some of our Canadian mills to negative cash flow generation, and we must focus on our most efficient mills in order to return to profitability in the foreseeable future,” Richard Garneau, Domtar executive vice president of operations, said in a statement.

The plan includes closing a mill in Cornwall, Ontario, closing portions of an Ottawa mill, the decision to sell a Vancouver mill and the closing of sawmills in Grand Remous and Malartic, Quebec.

The company also is eliminating 100 corporate and divisional positions, 200 operational positions at the mill level and consolidating the North American administrative offices in Montreal and Cincinnati. The company employs 10,000 people across North America.

Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters

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