UFS (NYSE, TSX)
MONTREAL, Dec. 18 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) announced today the permanent closing of its Lebel-sur-Quevillon, Quebec sawmill. The sawmill has been indefinitely idled since 2006 and at that time employed approximately 140 people.
"Market conditions and housing starts in the United States have continued to deteriorate in the last few years, affecting both the demand for wood products and the profitability of our operations. These factors, coupled with the reduction of harvesting potential in Quebec, have forced us to rationalize production," said Jean-Francois Merette, Senior Vice-President of Forest Products at Domtar.
More recently, the Quebec government approved a plan to consolidate the available forest harvesting rights in Northern Quebec. This has led Domtar to concentrate on its active operations in order to preserve jobs and attempt to bring these facilities to a level of profitability. Industry producers accepted the consolidation plan following consultations with the communities in the region.
Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publication as well as converting and specialty papers including recognized brands such as Cougar(R), Lynx(R) Opaque, Husky(R) Offset, First Choice(R) and Domtar EarthChoice(R) Office Paper, part of a family of environmentally and socially responsible papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. Domtar also produces lumber and other specialty and industrial wood products. The Company employs nearly 13,000 people. To learn more, visit www.domtar.com.
All statements in this press release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Forward-Looking Statements" and "Risk Factors" of the Form 10-K filed with the SEC. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.