Business

Domtar cuts 100 jobs as part of restructuring of North Carolina fluff pulp mill

MONTREAL — Domtar is cutting about 100 positions at its mill in Plymouth, N.C., as it closes a pulp dryer and reduces production of fluff pulp used in diapers.

The Quebec-based pulp and paper producer (TSX:UFS) says the changes are part of a restructuring at the mill to be completed by mid-2017 that will see annual fluff pulp production decrease to about 380,000 tonnes from 470,000 tonnes.

Domtar CEO John Williams says the changes will ensure the mill's long-term success.

In 2014, the company announced plans to spend US$160 million over two years to increase fluff pulp production at its Ashdown mill in Arkansas that would result in the elimination of about 142 jobs.

Since entering the adult incontinence business in 2011, Domtar has made several acquisitions to grow its personal care business in the face of declining demand for paper.

In addition to fluff and market pulp, Domtar is North America's largest manufacturer of uncoated freesheet paper such as copier paper.