Paper mill unit’s closure costs 79 jobs

Domtar, a paper manufacturer, permanently and immediately shut down a paper machine Thursday at its mill in Ashdown, resulting in 79 workers losing their jobs at one of the area’s largest employers.

Some 750 workers will remain at the plant, an employment anchor in Little River County since it opened in 1968.

Based in Montreal and Fort Mill, S.C., Domtar purchased the mill from GeorgiaPacific Corp. in 2001, when it had 1,250 employees.

The 79 workers in Ashdown remain on the payroll while management and union representatives continue the “downsizing discussions,” said Tammy Waters, a spokeswoman at the Ashdown plant.

“There’s a collective bargaining agreement and other factors that have to be discussed,” Waters said. “But our focus, at this point, is helping them through that transition.”

The machine shut down Thursday produces “uncoated freesheet paper,” which is made of a mix of hardwood and softwood and is a brighter paper than that made with wood pulp. Generally, it’s paper for photocopiers.

It’s at least the second blow to Arkansas’ timberand-mill industry since June, when Georgia-Pacific announced closings that would eliminate 555 jobs in Crossett and 100 in Hope.

Domtar on Thursday also said it will shut down a paper machine at its plant in Port Huron, Mich., by midNovember, affecting 21 jobs.

The two machine closings will reduce the company’s annual uncoated freesheet paper capacity by about 204,000 short tons.

Domtar has 13 mills in the

United States and Canada, and 10 paper converting plants in the U.S.

“I wish to sincerely thank colleagues impacted by the closures and recognize their hard work and contribution to Domtar over many years,” John D. Williams, Domtar’s president and chief executive officer, said in a statement.

“As difficult as these actions are, we believe they are necessary in light of the declining market for uncoated freesheet paper.”

Williams said the “proactive measure is necessary due to increased imports and declining paper demand.”

The Ashdown mill will continue to operate one paper machine with an annual uncoated freesheet paper production capacity of 200,000 short tons.

The mill also operates one of the world’s largest

fluff pulp machines, with the flexibility to produce softwood pulp depending on market conditions.

Its current production of softwood and fluff pulp will increase during the next 12 months, the company said. Fluff pulp is used in the production of diapers and absorbent hygiene products.

“Closings like this will have a ripple effect,” Max Braswell, executive vice president of the Arkansas Forestry Association, said by telephone, referring to economic connections between a landowner who grows trees for an income, loggers who harvest the trees, mills that produce the pulp, lumber and chips, and manufacturers who “produce the goods we use every day.”

News of the closing circulated quickly among a few people gathered Thursday morning for a meeting on fire prevention involving officials with the Arkansas Department of Agriculture that also was attended by four members of the Arkansas Forestry Commission and Braswell.

The Domtar announcement “is far worse than anything we’ve talked about today,” state Forester Joe Fox said, referring to earlier discussions of concerns among some Forestry Commission members about the effects of Gov. Asa Hutchinson’s government reorganization on Forestry Commission operations. The General Assembly approved Hutchinson’s plan this year.

The mill’s machine closure will result in fewer trees being harvested, leading to denser forests more susceptible to wild fire, Fox said. “A healthy market equals healthy forests,” he said.

Fox also noted that the Georgia-Pacific closings already have reduced severance taxes collected by the state on timber processing by $100,000.