Domtar COVID-19 Layoff at Ashdown Mill

FORT MILL, SOUTH CAROLINA – Domtar Corporation today announced that it will temporarily idle the operations of its A62 paper machine at its Ashdown mill and its Kingsport, Tennessee mill for three months in response to the “unforeseeable business conditions driven by the COVID-19 pandemic.”

The temporary shutdown will reduce Domtar’s uncoated freesheet paper production capacity by approximately 144,000 short tons over the three months’ period. As a result, Domtar will lay off  142 employees at its Ashdown mill and approximately 304 employees at its Kingsport mill. The layoff could also have an impact on its timber suppliers and haulers in all of southwest Arkansas.

“The COVID-19 pandemic is having a negative impact on communication paper demand, with offices, businesses and schools still closed in a large part of our markets,” said John D. Williams, President and Chief Executive Officer. “Given the evolving market conditions, we are taking the appropriate steps to optimize our operations, which will ensure that we remain an agile, reliable partner to our customers. We regret the impact these temporary shutdowns will have on our Kingsport and Ashdown employees and their families, and we are doing everything we can to support them during this time.”

Domtar’s other facilities remain fully operational, and continue to ship products to all states and
provinces without disruption.