MONTREAL -- Domtar Corporation announced today that it will be idling its Woodland pulp facility in Baileyville, Maine for an undetermined period, as of May 5, 2009. The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons. Approximately 300 employees will be affected by this announcement.

"Current worldwide economic conditions with weaker global demand for pulp, historically high inventory levels and depressed prices make it extremely challenging for northern hardwood pulp mills to compete. With no immediate recovery in sight, we must temporarily reduce our pulp manufacturing capacity," said John D. Williams, President and Chief Executive Officer of Domtar.

Domtar is committed to working with Maine State Governor, John E. Baldacci, and his administration, to explore steps that can be taken to mitigate the impact of this announcement.