Domtar announced that it will permanently shut down the paper machine and converting operations of its Dryden, Ontario mill. This will result in the permanent curtailment of Domtar’s annual paper production capacity by approximately 151,000 tons of uncoated freesheet paper. Dryden papermaking and converting operations are expected to cease by mid-November 2008.
“Given adverse economic conditions and the continued softening of demand for fine papers, we need to further reduce our production capacity,” said Raymond Royer, President and Chief Executive Officer of Domtar.
Dryden’s pulp production and related forestland activities will remain in operation. Dryden has one pulp line with an annual production capacity of 319,000 air dry metric tons.