Domtar Announces Measures to Mitigate Weak U.S. Dollar
December 09 2004 - 8:58AM
PR Newswire (US)
Domtar Announces Measures to Mitigate Weak U.S. Dollar Ticker
Symbol : DTC (TSX, NYSE) MONTREAL, Dec. 9 /PRNewswire-FirstCall/ --
Domtar Inc. announced today that it will close indefinitely part of
its operations at its Cornwall mill. More specifically, the company
will shut down the pulp mill, a paper machine, and a sheeter at
this location. The closure will take effect on March 8, 2005 and
will last until such time as economic and market conditions allow
these assets to operate profitably. In so doing, Domtar will be
curtailing production by 150,000 tons of pulp and 85,000 tons of
paper. This measure will impact approximately 390 jobs. Domtar also
announced that it will eliminate a further 400 jobs across the
company's operations in Canada and the United States, including
management and staff functions, by the end of 2005. "Our Cornwall
mill is significantly exposed to the difficult market conditions
facing the Canadian pulp and paper industry. By using lower cost
pulp manufactured at other company facilities as well as closing
down one paper machine in Cornwall and redirecting products to more
cost effective paper machines in our system, Domtar will improve
its overall performance while at the same time continue to serve
customers," stated Raymond Royer, President and Chief Executive
Officer of Domtar Inc. "Domtar must take the necessary steps to
face world-wide competition. The Cornwall decision as well as the
reduction of a further 400 positions will contribute to our
previously announced objective of improving our profitability by
$200 million. This workforce reduction will mainly result from the
sharing of best practices between manufacturing facilities and
staff functions, the completed deployment of a single Enterprise
Resource Planning information technology system as well as a
concerted effort by all to reduce spending," noted Domtar's
President and CEO. "I am saddened, however, that Domtar employees
will lose their jobs. I can assure them that we will do our utmost
to support them during the transition," concluded Mr. Royer. In
keeping with its corporate values, Domtar will help employees
affected by today's announcement. In fact, when possible, affected
personnel will be re- deployed. Workforce reductions will also be
achieved through attrition. Finally, employees that lose their jobs
will receive financial assistance and be given access to
outplacement services. Forward-looking statements This press
release contains statements that are forward-looking in nature.
Statements preceded by the words "believe," "expect," "anticipate,"
"aim," "target," "plan," "intend," "continue", "estimate," "may,"
"will," "should," and similar expressions are forward-looking
statements. Forward- looking statements are necessarily based upon
a number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to known and
unknown risks and uncertainties such as, but not limited to,
general economic and business conditions, product selling prices,
raw material and operating costs, changes in foreign currency
exchange rates, our ability to integrate acquired businesses into
our existing operations, and other factors referenced herein and in
Domtar's continuous disclosure filings. Therefore, Domtar's actual
results may be materially different from those expressed or implied
by such forward-looking statements. DOMTAR IS THE THIRD LARGEST
PRODUCER OF UNCOATED FREESHEET PAPER IN NORTH AMERICA. IT IS ALSO A
LEADING MANUFACTURER OF BUSINESS PAPERS, COMMERCIAL PRINTING AND
PUBLICATION PAPERS, AND TECHNICAL AND SPECIALTY PAPERS. DOMTAR
MANAGES ACCORDING TO INTERNATIONALLY RECOGNIZED STANDARDS 22
MILLION ACRES OF FORESTLAND IN CANADA AND THE UNITED STATES, AND
PRODUCES LUMBER AND OTHER WOOD PRODUCTS. DOMTAR HAS 11,000
EMPLOYEES ACROSS NORTH AMERICA. THE COMPANY ALSO HAS A 50%
INVESTMENT INTEREST IN NORAMPAC INC., THE LARGEST CANADIAN PRODUCER
OF CONTAINERBOARD. DATASOURCE: DOMTAR INC. CONTACT: William George,
Vice-President, Communications and Government Relations, (514)
848-6808, ; Source: Raymond Royer, President and Chief Executive
Officer, ; To request a free copy of this organization's annual
report, please go to http://www.newswire.ca/ and click on
reports@cnw.
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