Domtar Corp. will temporarily idle the operations of its Kingsport mill for three months in response to the COVID-19 pandemic, the company said in a statement.
The company will lay off approximately 304 Kingsport employees.
“The COVID-19 pandemic is having a negative impact on communication paper demand, with offices, businesses and schools still closed in a large part of our markets,” John D. Williams, president and CEO stated in the release. “Given the evolving market conditions, we are taking the appropriate steps to optimize our operations, which will ensure that we remain an agile, reliable partner to our customers. We regret the impact these temporary shutdowns will have on our ... employees and their families, and we are doing everything we can to support them during this time.”
The statement adds that other Domtar facilities remain fully operational, and continue to ship products to all states and provinces without disruption.
The decision also affected a plant in Ashdown, Arkansas.