15 months ago
WOODLAND (NEWS CENTER) -- Canadian papermaker Domtar announced Wednesday that it will restart its idled pulp mill in Baileyville. Approximately 300 workers will be called back.
Domtar says production at the Woodland pulp mill in Baileyville will resume the week of June 22.
The company shut the mill down in early May, citing weak global demand for pulp, as well as depressed prices. Since operations at the mill were suspended, Domtar's pulp inventory has been substantially reduced.
Senator Olympia Snowe said, "This is extremely welcome news for Washington County and I stand ready to continue to work with Domtar officials and other local stakeholders to ensure the future viability of the mill."
Snowe's office says the Senator successfully fought to preserve the so-called "black liquor tax credit," which has served as a critical lifeline to paper mills across the country during the economic slowdown, and allow it to remain in effect through 2009.
Domtar says the tax credit was crucial for the Baileyville mill to reopen.
The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons.
The company says it will closely monitor the mill's profitability, which is critical to maintaining operations.
Word of the restart comes a day after Federal regulators cited the Baileyville mill for 29 alleged serious safety violations and proposed $107,000 in fines.
The Occupational Safety and Health Administration said Tuesday that hazardous conditions were found during an inspection that began November 30.
OSHA area director William Coffin said the inspection found violations that could lead to crushing hazards, falls, electrocution, being caught in moving machine parts and other perils.
Domtar has 15 business days from receipt of the citations to pay the penalties, contest them or confer with OSHA about the violations.
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