Domtar CORP: restructuring charge — Domtar to idle Ashdown paper machine, cut 216K tons capacity, take $32M charge

Domtar CORP

Indefinite curtailment of A62 paper machine and sheeter by end of June 2024.
Reduces annual uncoated freesheet capacity by 216,000 short tons.
Pre-tax charge of ~$32M ($31M non-cash accelerated depreciation/write-offs, $1M other costs).
Ashdown mill will restart pulp dryer, adding 165,000 ADMT of southern bleached softwood kraft pulp.
No workforce reduction; tentative union agreement with no layoffs expected upon ratification.

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 $32 million affecting Ashdown, Arkansas facility (Ashdown Mill).

Type: restructuring
Charge: approximately $32 million
Affected area: Ashdown, Arkansas facility (Ashdown Mill)

Exact text from the filing

The curtailment will result in an aggregate pre-tax charge to earnings of approximately $32 million, which includes an estimated $31 million in non-cash charges relating to the accelerated depreciation of the carrying amounts of manufacturing equipment and the write-off of related spare parts, and $1 million related to other costs.

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Source: SEC EDGAR

accession 0001193125-24-043010

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