(CNW) Domtar Inc., a paper manufacturer, has announced Oct. 11 the indefinite closure of four sawmills, including one in Narin Centre.
The company reports the closures are primarily due to the pressure of higher timber costs and lower demand for both lumber and wood chips.
The Nairn Centre sawmill in Ontario, which employs about 140 workers, will close on Oct. 13. The other three sawmills are located in Abitibi, Quebec.
"On the one hand, substantially higher procurement and processing costs for sawlogs have impacted the competitive position of our sawmills in recent years. On the other hand, the slowdown in demand has exerted considerable downward pressure on selling prices for wood products in recent months. These
two main factors have led us to make these difficult decisions," said Richard Garneau, Domtar's executive vice president of operations, in a news release.
Domtar said meetings have been held with mill management, union representatives, and the approximately 950 employees affected by the closures.
Domtar also announced Oct. 10 that it will hold a conference call with financial analysts to present its third quarter 2006 financial results on Tuesday, Oct. 31 at 4 pm (eastern).
Members of the public are invited to listen to the live broadcast on the Domtar corporate website at http://www.domtar.com/en/investors/media/3288.asp. A full replay will be available on Domtar’s website or by phoning 1-866-883-4489 and using access code: 2585354# until Nov. 30.
