Canadian forestry firm Domtar will shutter its pulp mill in Baileyville, Maine for an indefinite period, affecting 300 employees.
This is the latest in a string of production and job cuts for Domtar, which is trying to cut costs as the economic meltdown affects demand.
The Woodland mill, which will close on May 5th, has an annual hardwood pulp production capacity of 398,000 air dry metric tons.
Montreal-based Domtar, which manufactures office paper, plans further measures to cut costs, including a salary freeze and reduction in non-essential spending.
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