Domtar Halts production at Lebel-sur-Quevillon pulp mill due to unfavorable economic factors

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Domtar Halts production at Lebel-sur-Quevillon pulp mill due to unfavorable economic factors

Monday, November 28, 2005

Press release from the issuing company

MONTREAL, Nov. 24 -- Domtar Inc. announced the shut down of the Lebel-sur-Quevillon pulp mill at 5:00 p.m. on November 24, due to unfavorable economic factors. "Domtar is taking measures to mitigate the negative impacts of a combination of economic factors: downward pressure on prices, growing fiber supply costs, rising energy and transportation costs, the strengthening of the Canadian dollar and labor costs that exceed those of competitors. The pulp mill at Lebel-sur-Quevillon will be up and running as soon as economic factors allow the mill to operate profitably," stated Raymond Royer, President and Chief Executive Officer of Domtar.

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