Domtar temporarily idles Espanola pulp and paper operations

Challenges prompt indefinite shutdown

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Domtar has announced the indefinite idling of its pulp and paper operations in Espanola this fall due to years of ongoing losses and high operating costs. The decision comes after diligent efforts to find a viable path forward, including offering the operation for sale.

The closure process begins with the pulp mill shutting down in early October, followed by the paper machines in early November. Domtar, which acquired the mill in 1998, expressed its gratitude to the employees and local officials for their contributions and support. Domtar plans to take appropriate measures to assist affected employees, following the collective agreement, company policy, and legislation. The company also intends to idle the mill in a safe and environmentally sound manner to facilitate a possible sale or future restart.

Espanola, located approximately 71 kilometers west of Sudbury, has a population of around 5,000 residents. This decision reflects a broader trend of similar moves in Northern Ontario communities over the past decade. In a separate move, Domtar recently announced the sale of its pulp mill in Dryden to First Quality in late February.

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