Domtar to shut down Ontario paper machine

MONTREAL - Canadian lumber and writing-paper maker Domtar Corp., citing weak economic conditions and softening of demand for fine papers, said it is shutting down a paper machine at an Ontario mill, a move that will affect roughly 195 employees.

Domtar said Tuesday that the decision involving its Dryden, Ontario, mill will result in the permanent curtailment of the company's annual paper production capacity by about 151,000 short tons of uncoated freesheet paper.

"The mill's relative cost position and the need to maintain a balance in Domtar's supply and demand system have made this difficult decision necessary," said Raymond Royer, president and chief executive of Domtar.

The company said Dryden's papermaking and converting operations are expected to cease by mid-November. Dryden's pulp production and related forestland activities will remain in operation. Dryden has one pulp line.

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