The move is part of the company’s plan to temporarily right-size production capacity amid the Covid-19 pandemic
Domtar is set to temporarily close operations at Hawesville, Kentucky mill in the US. (Credit: Thanks for your Like • donations welcome from Pixabay)
Domtar, a US-based integrated producer of uncoated free-sheet paper, has announced plans to temporarily idle operations at its Hawesville mill in the US state of Kentucky.
The move is part of the company’s efforts to temporarily right-size production capacity to address the ongoing Covid-19 business conditions.
Effective from 5 May 2020, the suspension of Hawesville mill operations would result in the temporary layoff of approximately 400 employees.
Domtar expects the temporary shutdown to reduce its uncoated freesheet paper production capacity by approximately 83,000 short tonnes.
Domtar president and CEO John Williams said: “Throughout the Covid-19 pandemic, we have been actively monitoring the impacts to our business and taking methodical steps to optimise capacity in the current environment.
“We believe it is appropriate to take the additional step of temporarily idling our Hawesville mill in light of reduced paper demand. We are optimistic that we have taken the right actions to effectively manage the business through these evolving market conditions.”
Domtar’s other facilities to continue operations at full capacity
The firm, however, plans to operate rest of its facilities at full capacity with shipments to continue as usual.
Domtar said it is planning to resume the H1 paper machine in June 2020 whereas the H2 paper machine will remain shut down until July 2020.
Domtar Pulp and Paper division president Mike Garcia said: “We regret that this temporary action will have an impact on our exceptional people and their families.
“We are doing everything we can to help them through this unprecedented period, and we have great confidence in the long-term strength and viability of our paper mills.”
Earlier this month, Domtar has announced the temporary idling of the operations at Kingsport milk in Tennessee, as well as the A62 paper machine at its Ashdown mill in Arkansas for three months, to address the impact of COVID-19 related business.
Domtar said that the temporary shutdown will decrease the company’s uncoated freesheet paper production capacity by around 144,000 short tonnes for three months.