*NEWS*SHUTDOWNS @ CANADIAN PAPER MILLS

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Date: Thursday December 8, 2005 10:56:00 am
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    Shutdown at UPM mill
    December
    2005 – Miramichi (CAN): UPM has announced a three-month shutdown of its
    Miramichi mill in New Brunswick, Canada, effective 1 February 2006.
    The
    lay-off will affect employees at the paper and groundwood mills. UPM
    stated that high operating costs and the strong Canadian dollar had
    made the mill’s exports to the US “unprofitable”.

         
    Domtar cuts 1,800 jobs
    Montreal
    (CAN): Canadian paper maker Domtar is cutting 1,800 jobs and plans to
    close or sell several mills in a bid to return to profitability.
    The
    company said it expects to close its mills in Cornwall, Ontario and
    parts of its Ottawa and Ontario mills. The plan will also see the firm
    sell its mill in Vancouver, British Columbia, and shut its saw mills in
    Grand Remous and Malartic in Quebec.
    The Cornwall mill is the
    largest facility, with 910 employees and a total capacity of 265,000
    tonnes of uncoated and coated printing grades on three paper machines.
    The Cornwall cuts include 390 positions already terminated in December
    2004.
    Domtar also revealed it will consolidate its North American
    administrative offices in Montreal and Cincinnati, and will overhaul
    its supply chain.
    The company said its strategy to boost profits will result in pretax restructuring charges of $505 million.

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