Domtar cuts output of woodfree uncoated paper

Domtar will stop two PMs in the US for three months
to match output to weaker demand for communication papers.
07 Apr 2020 − 

Domtar Corporation will temporarily curb production of woodfree uncoated (WFU) paper at two mills in the US "in response to the unforeseeable business conditions driven by the Covid-19 pandemic."

According to Domtar, the downtime measures are scheduled for the Kingsport, Tennessee mill, and on the paper machine A62 at the company's Ashdown, Arkansas mill. The temporary downtime would last for three months and reduce the company's output by a total of 144,000 sh.t (130,000 t). As a result, a total of 346 employees at the two sites will be laid off.

The production curtailment was reportedly necessary to adopt operations to evolving market conditions. "The Covid-19 pandemic is having a negative impact on communication paper demand, with offices, businesses and schools still closed in a large part of our markets," said John D. Williams, Domtar's President and Chief Executive Officer. The company's other facilities will remain fully operational, and continue to ship products to all states and provinces without disruption, according to Domtar.

The Covid-19 disease caused by the novel coronavirus (SARS-CoV-2), and the lockdown measures imposed on public and private sector by governments in order to limit the Covid-19 spread, are reducing economic activity worldwide, and are expected to have a strong impact on many industrial segments. As the coronavirus spreads across the globe, EUWID Pulp and Paper is keeping you up-to-date with latest news and developments in the recycling, pulp, paper, packaging and printing industries.

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