Domtar CORP: restructuring charge — Domtar indefinitely idles Espanola mill; $85M pre-tax charge, 450 employees affected

Domtar CORP

Indefinitely idling pulp and paper mill in Espanola, Ontario for >1 year; reduces annual pulp production by ~280,000 metric tons and paper by ~69,000 tons.
Approximately 450 employees affected; pulp shutdown early October, paper machines early November.
Expects aggregate pre-tax charge of ~$85M: $32M non-cash (equipment write-off), $31M cash (severance), $22M other closure costs.
Mill idled due to ongoing operating losses and high costs; company will assist employees per collective agreement and legislation.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Domtar CORP announced a restructuring with charges of approximately $85 million affecting Espanola pulp and paper mill (approximately 450 employees).

Type: restructuring
Charge: approximately $85 million
Affected area: Espanola pulp and paper mill
Headcount: approximately 450 employees

Exact text from the filing

pulp and paper mill are expected to be incurred largely in the third quarter of 2023. The closure is expected to result in an aggregate pre-tax earnings charge of approximately $85 million, of which an estimated $32 million are non-cash charges related to the write-off of the carrying amount of the equipment, related spare parts and inventory obsolescence, an

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Source: SEC EDGAR

accession 0001193125-23-233410

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