Montreal, Ontario, Canada, 10 June 2009 -- /PRNewswire/ -- Domtar Corporation (NYSE/TSX: UFS) announced today that it will be reopening its Woodland pulp mill in Baileyville, Maine. Approximately 300 employees will be called back for the restart of pulp production, which is targeted to resume the week of 22 June 2009. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons.
Domtar announced the closure of the Woodland pulp mill for an undetermined period on 05 March 2009, due to weak global pulp demand, historically high inventory levels, and depressed prices. Domtar pulp inventory levels have since been substantially reduced. The timely benefits from the refundable tax credits for the production and use of alternative biofuel mixtures, and other important conditions, such as stronger global demand, improving prices, and favorable currency exchange rates have made the reopening possible. Domtar will closely monitor the mill's profitability, which is critical to maintaining operations.
Domtar Corporation is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity. It also manufactures papergrade, fluff, and specialty pulp. The company designs, manufactures, markets, and distributes a wide range of business, commercial printing, publication, converting, and specialty papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. Domtar also produces lumber and other specialty and industrial wood products. The company employs nearly 11,000 people. To learn more, visit www.domtar.com.