SHUTDOWNS @ CANADIAN PAPER MILLS

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Date: Thursday December 8, 2005 10:55:00 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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