Sexton Lumber Co. Limited, a lumber company that operates a sawmill in Bloomfield, announced it will temporarily close operations at the site until further notice.
The company said in a release on Tuesday that a log shortage has forced it to close the site until log inventory is back up.
In the release, the company said the closure will directly affect all 79 employees at the mill.
The company said it had requested additional timber be sent to the site to avoid the shutdown, but the request was denied, citing the expression of interest for the development of the resources formerly held by Abitibi-Bowater.
According to the company's release, the shutdown of the Bloomfield mill will stop the flow of pulp chips to Corner Brook Pulp and Paper.
Sexton Lumber, located near Clarenville, is the largest sawmill in Newfoundland. It is also the largest supplier of both pulp chips and spruce fibre to Corner Brook Pulp and Paper.