Domtar Restructures Paper Mills

Domtar announced permanent workforce reduction of approximately 1,800 positions across the Company, that includes the reorganization announced in December 2004 at the Cornwall mill. Highlights of the plan include-
-Permanent closure of the Cornwall, Ontario mill
-Permanent closure of PM No.10 and PM No.11 of the Ottawa, Ontario mill
-The decision to sell the Vancouver, BC mill
-Closure of the sawmills at Grand Remous and Malartic, Quebec with the intention of creating a value-added project using the existing infrastructures
-A cost reduction program as follows:
-Reduce selling, general, and administrative expenses by eliminating approximately 100 additional corporate and divisional positions, as well as other SG&A expenses
-Implement further cost reductions at the mill level by eliminating approximately 200 additional operational positions
-Consolidate North American administrative offices in Montreal and Cincinnati.