Domtar to Close Port Edwards, WI Paper Mill

Another major paper mill closure has been announced today. Domtar has reported their intention to close the Port Edwards Wisconsin paper mill during the first half of 2008. Port Edwards is a mill with a long history of making fine papers.

In Domtar's letter to its customers dated today they do not give a specific reason for the closure. They do however imply that they have excess capacity within their manufacturing system and will create a transition plan for Port Edwards products to be manufactured at other Domtar paper mills.

I can only speculate that this action is due to the ongoing divergence between manufacturing capacity and market demand with the North American markets.