Domtar shutting down operations in Espanola

The pulp and paper mill in Espanola, Ont., is being shut down next month, with approximately 450 employees affected, Domtar Corporation said in a news release Wednesday morning.

Domtar mill in Espanola, Ont.. (Supplied)

"The mill will be idled after years of ongoing operating losses and high costs associated with maintaining and operating the facility. The pulp mill will shut down in early October and the paper machines will shut down by early November," the company said.

"Domtar will take appropriate measures to assist employees affected by this decision in accordance with the collective agreement, Domtar policy and legislation. The mill will be idled in a safe and environmentally sound manner that will facilitate a possible sale or future restart."

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Steve Henry, president of Domtar paper and packaging, said the Espanola facility has been challenged for a while.

"We have worked diligently to find a viable path forward for the operation including offering it for sale," Henry said.

"Employees affected by this change have earned our appreciation and we thank them for their contributions. We also want to thank federal and provincial officials for their efforts."

The mill produces approximately 280,000 air-dried metric tons of northern bleached softwood kraft pulp and about 69,000 tons of specialty paper, the company said.

CTVNewsNorthernOntario.ca reached out to Espanola Mayor Douglas Gervais for comment, but he declined an interview today saying he "was too busy." 

A statement from Gervais was posted on the town's website.

"It is with heavy hearts that the Town of Espanola has learnt of the Domtar Corporation’s announcement to indefinitely idle the pulp and paper operations at its Espanola facility. The workers and families of the pulp and paper industry have been the life blood of Espanola since the turn of the 20th century. The town will be advocating to all levels of government in support of our community. As we learn more over the coming days and weeks, the town will do everything it can to help the workers and families impacted and the community at large," the statement said.

But in Espanola, many people said they are shocked by the news.

"I never knew that was coming," one person told CTV News video journalist Amanda Hicks.

"I don’t know if anyone else was aware of it, but it caught me off guard."

PROVINCE LOOKING FOR SOLUTIONS

“It came as a surprise to us all and I want the people of Espanola to know the province stands with them,” said the Ontario Minister of Northern Development Greg Rickford Friday.

“I understand and appreciate for many there’s an uncertain future. As someone from Kenora, we saw a mill closure there and in Fort Frances, and the impact it can have. We're going to remain hopeful that paper excellence and Domtar work with the province and work with the workers of Espanola. It’s not about the facility itself it’s about an entire supply chain and woodland operators.”

Rickford said the provinces wants to work with Domtar and the industry to see what can be done – talk about solutions.

“I work very closely with the ministry of natural forestry,” he said.

“We were very surprised about the spontaneity of it but we stand ready to support the community and move forward and hopefully a new buyer will be found and this will be temporary. This is all very new so we're figuring out ways to support.”

A DIFFICULT DAY

Town councillor Aidan Kallioinen said he had a "heavy heart" after hearing the news.

"Like most folks, I'm still processing the events this morning," Kallioinen said.

"My thoughts and my prayers are going to be with those affected by the shutdown -- our workers at the mill and those affected more broadly ... There's no denying that the effects of this are going to be profound and they're going to fundamentally change the dynamics in the community."

Domtar spokesperson Bonny Skene said it was a difficult day.

"I know first-hand what these kind of actions and announcements have on the community and I can tell you, within Domtar, I think you can hear the weight in my voice," Skene said.

"This is not where we wanted to be. And it’s a diffciult decision, it’s a difficult announcement."

Skene added that the plant is being idled safely in hopes of a buyer coming in or a restart down the road, "but not to provide false hope in any way."