Domtar announced Monday they will lay off approximately 400 employees as they plan to temporarily idle the operations of the Hawesville mill starting May 5.
The company expects to restart the H1 paper machine in June 2020, while the H2 paper machine will remain idled until July 2020. The temporary shutdown will reduce Domtar’s uncoated freesheet paper production capacity by approximately 83,000 short tons.
“A small crew will remain to transition and to ensure the site’s safety and security during the temporary idling,” according to a statement from Domtar. “We are taking significant steps to care for our employees and their families during this time.”
The update comes after Domtar previously announced a capacity reduction plan, which is designed to temporarily right-size production capacity in light of the business conditions created by the COVID-19 pandemic.
This incremental action follows Domtar’s idling of its mill in Kingsport, Tenn., and the A62 paper machine at its mill in Ashdown, Ark.. Combined, the temporary shutdowns will reduce production capacity by approximately 227,000 short tons of uncoated freesheet paper. The company anticipates inventory to be at appropriate levels after this downtime.
“Throughout the COVID-19 pandemic, we have been actively monitoring the impacts to our business and taking methodical steps to optimize capacity in the current environment,” said John D. Williams, President and Chief Executive Officer. “We believe it is appropriate to take the additional step of temporarily idling our Hawesville mill in light of reduced paper demand. We are optimistic that we have taken the right actions to effectively manage the business through these evolving market conditions.”
Beyond these temporary shutdowns, all of Domtar’s other facilities remain fully operational and shipments continue to proceed without disruption. The health and safety of Domtar’s employees remains its central focus as the Company works to operate its business as efficiently as possible to meet the needs of its customers.
—–
Click here for all of our coronavirus coverage.
The Owensboro Health coronavirus hotline is available 24/7 by calling 877-888-6647. Call the hotline before seeking in-person care. More information from OH can be found here.
For the latest information and data on COVID-19 in Kentucky visit kycovid19.ky.gov or dial the Kentucky state hotline at 800-722-5725.
For the latest health guidelines and resources from the CDC, visit their website here.
