Prevailing economic situation in the global pulp markets negatively affected competitiveness of the small pulp line, says Domtar.
Domtar will permanently reduce its total annual production capacity by 120,000 t of softwood pulp by closing one out of the two pulp lines at the Kamloops pulp mill in British Columbia. According to Domtar, competitiveness of the small pulp line detoriated due to the current situation in the global pulp markets. Furthermore, the recovery boiler needs to be repaired which required additional investments.
The sawdust softwood pulp machine is scheduled for closure by the end of March 2013. 125 employees are affected
Domtar says it will continue pulping operations at the Kamloops mill on the second pulp, producing 350,000 tpy of softwood kraft pulp.
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