Domtar mill to reopen for full production

Domtar Corporation will be reopening its Woodland pulp mill this month because of a number of favorable changes in the marketplace. Scott Beal, company spokesperson for the Baileyville plant, anticipates that all 300 mill workers will be called back by June 23 for a full manufacturing production schedule. "We've got some maintenance to do; we're calling approximately 120 of the maintenance crew back first, then some of the operational crew," Beal says of the schedule leading up to the manufacturing start date. The mill had been closed on May 5 for an indefinite period.

"This welcome announcement is precisely what we hoped for but didn't dare to believe would happen," said Senate Republican Leader Kevin Raye of Perry in a prepared statement. "The reopening comes as a tremendous relief to the hundreds of families whose livelihood depends on the mill, and I'm elated by this turn of events. While it remains to be seen what this will mean for the long-term, it feels like a reprieve from a death sentence."

Domtar Corporation is the largest integrated manufacturer and marketer of uncoated free-sheet paper in North America and is the second largest in the world based on production capacity. It employs almost 11,000 people across its different divisions.

The wider economic implications of the mill's idling were of concern to support businesses and services, including the Port of Eastport, where the pulp is shipped to market. "We, like many, received word of Domtar's plans [to reopen] and went to work immediately with the stevedores and longshoreman's union," says Port Director Chris Gardner. "They're a great union and won't miss a beat. Scheduling shouldn't be a problem."

Beal reports that the plant has "a fair amount of wood on the ground, so we'll be getting the wood in front of us" for immediate operations. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons.

The continued operations of the mill are not guaranteed, though. In a release, Domtar said that it will closely monitor the mill's profitability. "The profitability issue is a difficult thing, but it is not new," says Beal. "The market factors have changed; they've come back to a more normal balance. We have favorable currency exchange rates for exports, which we are heavily in, plus we have the federal energy tax credit. All of these forces have contributed," Beal says, to the reopening of the mill.

Congressman Mike Michaud said in a prepared statement of the mill reopening, "This will make a difference in the lives of the employees, especially during these tough times. It is important for our country to develop a comprehensive plan to reinvigorate our manufacturing base. I will continue to push for the passage of my bill to provide tax credits to manufacturers and mills that produce biomass power. This would not only help reduce energy costs, but it would also support the transition to greener power among struggling industries nationwide, including Maine's paper industry."

"We're hopeful Domtar's situation stays positive," comments Gardner, "but we cannot lose sight of how fragile the port is when it only has one customer. Now more than ever we need to work on this; our vulnerabilities have been exposed." The port is continuing to work on expanding its customer base in the wind industry and with automated bulk handling. It is also continuing its long-term work on developing railroad ties to the port.

In recent weeks, Senator Raye has shepherded to passage two bills important to Domtar and its workers. One makes permanent the allowance of Canadian trucks bringing fiber vital to the mill's survival from the Calais border crossing, and the other strengthens protections for workers entitled to severance pay as a result of mill closures. "While the news today is good, we will all have to remain vigilant in support of the mill to do all we can to help make sure it remains in operation," he said.

Governor John Baldacci stated in a prepared release, "I have maintained throughout these past few months the belief that with the continued cooperation of the company and with high quality, productive people at the mill, these jobs could be saved. We will continue to work with the company on improving its long-term strength and on the potential repurposing of the facility."

A 22-year Domtar employee and one of the mill's union presidents, André Melanson of Eastport, summed up the general feeling of relief. "I'm really glad that a lot of people will be getting back to work."