Business News

Domtar announces reopening of Woodland pulp mill

Thursday 11. June 2009 - Domtar Corporation (NYSE/TSX: UFS) announced today that it will be reopening its Woodland pulp mill in Baileyville, Maine. Approximately 300 employees will be called back for the restart of pulp production, which is targeted to resume the week of June 22, 2009. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons.

Domtar announced the closure of the Woodland pulp mill for an undetermined period on March 5, 2009, due to weak global pulp demand, historically high inventory levels and depressed prices. Domtar pulp inventory levels have since been substantially reduced. The timely benefits from the refundable tax credits for the production and use of alternative bio fuel mixtures, and other important conditions, such as stronger global demand, improving prices and favorable currency exchange rates have made the reopening possible. Domtar will closely monitor the mill’s profitability, which is critical to maintaining operations.