ASHDOWN, Ark. - Domtar Corp. announced Oct. 3 that one of its paper machines at the Ashdown plant will be shut down permanently, with a downsizing of 79 positions.
Also, another paper machine will be shut down in Port Huron, Michigan. The company said these measures will reduce its annual uncoated freesheet paper capacity by approximately 204 short tons and result in a total workforce reduction of about 100 employees.
At the Ashdown plant, the No. 63 paper machine has been shut down. Though 79 positions are expected to be downsized, they have not yet, nor has it been determined which employees are affected as of Thursday.
"We do not know who exactly which individuals will be affected yet," said Tammy Waters, Domtar spokeswoman. " The company has several possibilities for those downsized, including retraining, onsite job fair, as well as others."
Waters cites changing market conditions as the reason for the mill shutdown, as demand for a certain product produced by the Ashdown plant has been falling.
"This decision is the result of continuing declining demand for uncoated free sheet paper and the need to rebalance paper production with customer demand," she said. "This is an act of balance."
Little River Chamber of Commerce Director Jan Smith said the community is saddened by the news for Domtar and the impact on some of their employees.
"The mill will always be important to the local economy," she said. "Despite the announcement, the Chamber is confident the mill will be viable for years to come. The Chamber is committed to support Domtar as well as all of our other industries and business partners within the community."
At this time, the union leaders and mill leaders are still in discussion, determining how the downsizing will shake out.