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Domtar to temporarily idle its Dryden, Ontario pulp mill and Ear Falls, Ontario sawmill

April 2, 2009

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UFS (NYSE, TSX)

MONTREAL, April 2 /PRNewswire-FirstCall/ – Domtar Corporation (NYSE/TSX: UFS) announced today that it will idle its Dryden, Ontario pulp making facility for approximately ten weeks, effective April 25, 2009. This decision was taken in response to continued weak global demand for pulp and the need to manage inventory levels.

Domtar will also idle its Ear Falls, Ontario sawmill for approximately seven weeks, effective April 10, 2009. North American lumber market conditions require that this temporary curtailment be taken at this time.

These temporary measures will affect approximately 500 people employed at the pulp mill, sawmill and related forestland operations.

The Dryden mill has an annual softwood pulp production capacity of 319,000 air dry metric tons. The Ear Falls sawmill has an annual production capacity of 190 million board feet of dimensional lumber.

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About Domtar

Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publication as well as converting and specialty papers including recognized brands such as Cougar(R), Lynx(R) Opaque, Husky(R) Offset, First Choice(R) and Domtar EarthChoice(R) Office Paper, part of a family of environmentally and socially responsible papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. Domtar also produces lumber and other specialty and industrial wood products. The Company employs nearly 11,000 people. To learn more, visit www.domtar.com.

Forward-Looking Statements

All statements in this press release that are not based on historical fact are “forward-looking statements.” While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions “Forward-Looking Statements” and “Risk Factors” of the Form 10-K filed with the SEC. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.

SOURCE DOMTAR CORPORATION


Source: newswire



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