City Council to discuss Domtar closing

Today's announced closure of Domtar Inc.'s hardwood lumber operation in Sault Ste. Marie will be discussed at Monday night's meeting of City Council.

Mayor John Rowswell says that councillors will be asked to local discuss how to work with Domtar to sustain existing operations and develop new ones, how to work with the provincial and federal government to resolve higher problems identified, and how to help the 130 employees who'll be laid off at the end of January.

The Mayor said he met with local Domtar officials this morning and was advised that the closure is due to poor-quality hardwood stands and market conditions that have been worsened by Canada's softwood lumber dispute with the United States.

Here's the full text of a news release from the Mayor:

******************************************************************** For Release November 29, 2002

I met with Domtar early this morning about their announcement.

- Richard Garneau, Senior Vice-President, Forest Products Group

- Jim Boniferro, General Manager - Richard Descarries, Regional Communications

I was informed of the reduction in workforce from 180 to 50.

We were not aware of Domtar's hardwood mill difficulties.

I understand that the reduction is a result of:

1) Poorer quality hardwood stands and Domtar having to travel farther and farther for quality hardwood.

2) Difficult market conditions for selling the hardwood product. This has been amplified due to the softwood lumber dispute with the United States.

This matter has been placed on the Council Agenda for Monday where we will talk about:

- How can we work with Domtar to sustain the existing operations or develop new operations in Sault Ste. Marie

- How can we work with higher levels of government to assist in fixing the problems identified.

- How can we help the employees?

Job losses in our community are difficult at any time of the year given the economic challenges we have before us.

An announcement such as this just prior to Christmas makes that much more difficult to accept.

*************************************************************** Meanwhile, the following news release was issued tonight by the Ontario Ministry of Natural Resources:

Ouellette and Wilson concerned about closure of Domtar plant in Sault Ste. Marie

TORONTO, Nov. 29 - The Ministry of Natural Resources and other government ministries are working to address the implications of the decision by Domtar Inc. to permanently close its hardwood lumber operation in Sault Ste. Marie, said Natural Resources Minister Jerry Ouellette.

"I recognize how important the forest industry is to the economy of Northern Ontario, and any job lost is one too many," said Ouellette.

"My thoughts are with the families who are dealing with today's difficult news, but we are more determined than ever to keep the forest industry strong and its people working."

"Our government is working to help the people of Sault Ste. Marie deal with a disruption in the local economy due to the job losses at Domtar," Northern Development and Mines Minister Jim Wilson said.

"Our government will continue to help the community develop a broader economic base so that people who live and work in the North can continue to look to the future with confidence."

Wilson pointed out that Sault Ste. Marie is already eligible to apply for funding under the Northern Ontario Heritage Fund's Economic Diversification Assistance Program (EDAP).

EDAP invests in projects that help bring new economic activity to northern communities experiencing an economic disruption.

In addition, the province, through the Ministry of Training, Colleges and Universities, is working to implement a labour adjustment program that will help ensure adequate resources are available to address the needs of the affected employees.