Espanola 'heartbroken' with word that paper mill will shut down 'indefinitely' | CBC News

Espanola

Closure Of Northern Ontario Paper Mill

Domtar has made the decision to permanently close its paper mill in Espanola, resulting in the dismissal of approximately 450 employees residing in the small town situated in northern Ontario.

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Company's Decision Based On 'years Of Losses And Costly Mill Upkeep'

Writer Erik White, who contributes content to CBC News, penned the blog segment.

· Published: September 6, 2023 at 11:43 AM Eastern Daylight Time | Updated: 14 minutes ago

Domtar has made the decision to permanently close its paper mill in Espanola without any specific timeline. As a result, approximately 450 employees in the small town of northern Ontario will be laid off.

The company announced on Wednesday morning that they will be closing down the pulp mill at their long-established plant in early October, and the paper machines will be put on hold in November.

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Steve Henry, the president of Domtar, stated in a release that the Espanola mill has been facing difficulties for quite a while.

We have put in a lot of effort to discover a workable way to continue the operation, which involved making it available for purchase.

Domtar has announced that it has made this decision due to "continuous financial losses over the years and the significant expenses required to maintain and operate" the Espanola mill.

The corporation announced that it will undertake "suitable actions" to support impacted employees and that the factory will be temporarily shut down in an environmentally responsible manner, with the intention of potentially selling it or resuming operations in the future.

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Jerry Logan, a national delegate for Unifor, expressed that he believed the purpose of the gathering on Wednesday morning was to have a conversation about fresh investments in the Espanola facility. He specifically takes on the role of representing the majority of employees at this plant.

Logan expressed surprise, stating that although the plant was available for purchase over the past few years, the possibility of closing the mill was not discussed during recent negotiations.

The initial reaction can be quite disheartening.

Logan mentioned that the workers were informed about the potential for the Espanola mill to resume operations after a mere year of being inactive.

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According to what we comprehend, we will have a minimal workforce in place to ensure the continuous supply of electricity and to prepare the equipment for future operations," he stated.

"And undoubtedly, Unifor's stance will be to expedite the resumption of operations at this mill at the earliest opportunity."

Al Tessier has been employed by Domtar for the last three decades, but following the revelation, he expressed assurance in his ability to secure alternative employment in the event of a layoff. He also believed that Espanola would ultimately be satisfactory.

"Consider the glass as being filled halfway, rather than being half depleted," he stated.

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Opportunities abound for everyone. Furthermore, I firmly believe that the factory will resume operations in the near future. Rest assured, everything is looking positive.

Erik White is a reporter from CBC stationed in Sudbury. He is responsible for reporting on various topics related to Northern Ontario. You can follow him on Twitter @erikjwhite and share your story suggestions by emailing [email protected].

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