Domtar shutting down operations in Espanola

The Espanola, Ontario-based factory that produces paper and pulp is set to close down in the following month, causing a significant impact on around 450 workers, as revealed in a press statement by Domtar Corporation on Wednesday.

Picture provided of the Domtar plant in Espanola, Ontario.

"The factory will temporarily cease operations due to continuous financial losses and the burden of maintaining and running the facility at high costs. The pulp mill is set to close in the beginning of October, while the paper machines will cease production by early November," announced the corporation.

Domtar will implement suitable actions to support employees impacted by this verdict, as per the joint agreement, Domtar regulations, and laws. The mill will be temporarily shut down in a manner that ensures safety and environmental sustainability, making it more favorable for a potential sale or future reopening.

According to Steve Henry, the head of Domtar's paper and packaging division, the Espanola site has been facing difficulties over an extended period.

Henry stated that they have put in a lot of effort to identify a feasible way to move forward with the operation, even exploring the option of selling it.

The alteration has had an impact on our employees, and we genuinely recognize their dedication and express our gratitude for their valuable input. Furthermore, we extend our appreciation towards the endeavors of officials at both the federal and provincial levels.

According to the company, the factory manufactures roughly 280,000 metric tons of air-dried northern bleached softwood kraft pulp, along with approximately 69,000 tons of specialty paper.

CTVNewsNorthernOntario.ca attempted to contact Mayor Douglas Gervais of Espanola for a statement, but he refused to be interviewed today, citing a lack of time.