Domtar announced today they will be permanently closing their remaining paper machine at the Ashdown, Arkansas mill.
According to Domtar around 109 employees will be let go due to the closure.
The machine has been idled since April 2020. The mill will now only produce pulp.
Domtar made the announcment today in its preliminary second quarter 2020 financial results.
“As part of the cost savings program, the Company will permanently close the uncoated freesheet manufacturing at the Kingsport, Tennessee and Port Huron, Michigan mills, the remaining paper machine at the Ashdown, Arkansas mill and the converting center in Ridgefields, Tennessee. These actions will reduce the Company’s annual uncoated freesheet paper capacity by approximately 721,000 short tons, and will result in a workforce reduction of approximately 780 employees. The Kingsport and Ashdown paper machines, which have been idled since April 2020, will not recommence operations. The Port Huron and Ridgefields mills are expected to shut down by the end of the first quarter of 2021.”