Domtar Corp. is to permanently close its mill in Gatineau, Quebec as well as its converting center in Ottawa, Ontario. Domtar is also permanently closing two paper machines, one at its Woodland mill in Baileyville, ME, and another at its Port Edwards, WI mill, effective immediately.

In total, these closures will eliminate about 284,000 tons of Domtar’s annual production capacity and reduce its total workforce by about 430 people.

“The driving forces behind this decision to permanently close these operations are excess capacity and cost competitiveness,” said Raymond Royer, Domtar’s president and CEO in a statement dated July 31. “Further rationalization may be implemented in the near future.”

Gatineau has a capacity of 125,000 tons/year of coated and uncoated paper. The mill and the Ottawa converting center together employ about 250 people. Operations are expected to cease by October 27, 2007.

The Woodland paper machine has a capacity of 125,000 tons/year of uncoated paper. The closure of this machine and its supporting sheeter will reduce the mill’s workforce by about 150 jobs.

The Port Edwards #5 paper machine has a capacity of 34,000 tons/year of uncoated paper. Its closure will reduce the mill’s workforce by about 30 jobs.

• Domtar recently sold its Quebec and Ontario sawmills and other joint ventures to Conifex Inc. of Montreal for $C285 million. Domtar has a 19.9% interest in Conifex.
www.domtar.com. PI.

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