Domtar shutting down operations in Espanola

The pulp and paper mill in Espanola, Ont., is being shut down next month, with approximately 450 employees affected, Domtar Corporation said in a news release Wednesday morning.

The pulp and paper mill in Espanola, Ont., is being shut down next month, with approximately 450 employees affected, Domtar Corporation said in a news release Wednesday morning.

"The mill will be idled after years of ongoing operating losses and high costs associated with maintaining and operating the facility. The pulp mill will shut down in early October and the paper machines will shut down by early November," the company said.

"Domtar will take appropriate measures to assist employees affected by this decision in accordance with the collective agreement, Domtar policy and legislation. The mill will be idled in a safe and environmentally sound manner that will facilitate a possible sale or future restart."

Steve Henry, president of Domtar paper and packaging, said the Espanola facility has been challenged for a while.

"We have worked diligently to find a viable path forward for the operation including offering it for sale," Henry said.

"Employees affected by this change have earned our appreciation and we thank them for their contributions. We also want to thank federal and provincial officials for their efforts."