Domtar closing White River, Ont., mill for six months

Domtar (TSX:DTC)announced Friday it will idle its mill in White River, Ont., on June 23 for six months. The company said 195 employees will be affected by the closure.

"Despite good housing starts, an oversupply in the North American market and U.S. duties on softwood lumber exports have created difficult market conditions: notably very low prices," Domtar senior vice-president Richard Garneau said in a release.

Under those conditions, the White River mill is unprofitable, Garneau said.

The company said 94 of the White River employees work in the mill and 101 work in forestry operation. Domtar said all timberland operations at mill ceased on Thursday.

The mill's annual production capacity is 125 million board feet annually about 10 per cent of Domtar's softwood lumber production capacity.

Domtar's shares rose 26 cents on Friday to close at $14.28 on the TSX.