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Domtar Corporation to Idle Pulp Mill in Maine
Montreal, Quebec, Canada 05 March 2009 -- /PRNewswire/ -- Domtar Corporation (NYSE/TSX: UFS) announced today that it will be idling its Woodland pulp facility in Baileyville, Maine, for an undetermined period, as of 05 May 2009. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons. Approximately 300 employees will be affected by this announcement.

"Current worldwide economic conditions with weaker global demand for pulp, historically high inventory levels, and depressed prices make it extremely challenging for northern hardwood pulp mills to compete. With no immediate recovery in sight, we must temporarily reduce our pulp manufacturing capacity," said John D. Williams, president and chief executive officer of Domtar. 

Domtar Corporation (NYSE/TSX:UFS) 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.

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