Domtar Linerboard (Cont’d from Page 1)
company is implementing, targeting $200 million in annu- al run-rate cost savings to be realized by the end of 2021. The cost-saving initiatives include capacity reduction and asset closures, mill-level cost savings and rightsizing sup- port functions.The leaner organizational structure is also expected to improve communication flow and cross-func- tional collaboration, leveraging more efficient business processes. In line with the program, Domtar will permanently close the uncoated freesheet manufacturing at the Kingsport, Tennessee, and Port Huron, Michigan, mills; the remaining paper machine at the Ashdown,Arkansas, mill; and the con-
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verting center in Ridgefields,Tennessee.These actions will reduce the company’s annual uncoated freesheet paper ca- pacity by approximately 721,000 short tons and will result in a workforce reduction of approximately 780 employees. The Kingsport and Ashdown paper machines, which have been idled since April 2020, will not recommence opera- tions. Port Huron and Ridgefields mills are expected to shut down by the end of the first quarter of 2021. Producing Recycled Linerboard Once in full operation,the Kingsport mill will produce and market approximately 600,000 tons annually of high-qual- ity recycled linerboard and medium.The conversion is ex- pected to be completed by the first quarter of 2023. Domtar estimates the conversion cost to be between $300 and $350 million. Once fully operational, the mill is expected to be a very low-cost, first quartile recycled liner- board mill in NorthAmerica.The converted mill is expected to directly employ approximately 160 employees. The company will complete the conversion of the Ash- down mill to 100 percent softwood and fluff pulp, which will require $15 to $20 million of capital investments and will take 12 to 14 months to implement.The mill will pro- duce additional market hardwood pulp until it converts the fiberline to softwood pulp. The conversion of the fiberline to 100 percent softwood is also necessary for an eventual expansion into container- board. Following the fiberline conversion,Ashdown will be a market pulp mill with annual capacity of 775,000 tons of fluff and softwood pulp. Domtar has chosen Voith to provide a complete recycled stock preparation system for the recently announced con- version of the Kingsport Mill in Kingsport,Tennessee.The system includes Voith’s BlueLine products including water, sludge and reject handling systems, which will reportedly maximize both efficiency and quality.
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Recycling Markets August 24, 2020 3
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