Domtar CORP: restructuring charge — Domtar permanently closes Crofton, BC mill; $60M pre-tax charge, 350 jobs affected

Domtar CORP

Permanent closure of Crofton, BC facility reduces annual NBSK pulp production by ~380,000 metric tons.
Approximately 350 employees affected; closure driven by poor pulp pricing and lack of affordable fiber in BC.
Estimated pre-tax charge of $60M: $19M cash severance, $33M non-cash asset write-offs, $8M other closure costs.
Charges expected largely in Dec 2025 with remainder in H1 2026; additional costs possible.
Domtex exploring future site options; remaining BC mills continue operations.

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 $60 million affecting Crofton, British Columbia, facility (approximately 350 employees).

Type: restructuring
Charge: approximately $60 million
Affected area: Crofton, British Columbia, facility
Headcount: approximately 350 employees

Exact text from the filing

On December 2, 2025, Domtar Corporation (“Domtar”) announced that it will permanently close operations at its Crofton, British Columbia, facility. The decision will reduce Domtar’s annual pulp production by approximately 380,000 air-dried metric tons of northern bleached softwood kraft (NBSK) pulp. The announcement will affect approximately 350 employees. The closure is expected to result in an aggregate pre-tax earnings charge of approximately $60 million, including an estimated $19 million in cash charges related to severance and employee benefits, an estimated $33 million in non-cash charges related to the write-off of the carrying amount of property, plant and inventory, and an estimated $8 million in cash charges related to other closure and clean-up costs.

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Source: SEC EDGAR

accession 0001193125-25-311445

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