Business News

Domtar to permanently close Lebel-sur-Quévillon sawmill

Friday 19. December 2008 - Domtar Corporation (NYSE/TSX: UFS) announced today the permanent closing of its Lebel-sur-Quévillon, Quebec sawmill. The sawmill has been indefinitely idled since 2006 and at that time employed approximately 140 people.

“Market conditions and housing starts in the United States have continued to deteriorate in the last few years, affecting both the demand for wood products and the profitability of our operations. These factors, coupled with the reduction of harvesting potential in Quebec, have forced us to rationalize production,” said Jean-François Mérette, Senior Vice-President of Forest Products at Domtar.
More recently, the Quebec government approved a plan to consolidate the available forest harvesting rights in Northern Quebec. This has led Domtar to concentrate on its active operations in order to preserve jobs and attempt to bring these facilities to a level of profitability. Industry producers accepted the consolidation plan following consultations with the communities in the region.