UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
September 23, 2016
(Date of Report/Date of earliest event reported)
DOMTAR CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE | 001-33164 | 20-5901152 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
234 Kingsley Park Drive
Fort Mill, SC 29715
(Address and zip code of principal executive offices)
(803) 802-4500
(Registrants telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 8.01 | Other Events |
On September 23, 2016, Domtar Corporation announced a plan to optimize fluff pulp manufacturing at its Plymouth mill. The streamlining measures will strengthen the mills position in the global fluff pulp markets.
The restructuring, which is expected to be completed by mid-2017, includes the permanent closure of the small pulp dryer and idling of related assets, in addition to a workforce reduction of approximately 100 positions. The streamlining process will also right-size the mill to an annualized production target of approximately 380,000 metric tons of fluff pulp. The Plymouth mill will continue to produce Lighthouse Fluff, the benchmark grade for high-quality fluff pulp.
The aggregate pre-tax earnings charge in connection with this plan is estimated to be between $5 million and $6 million mainly related to severance and employee benefits and is expected to be recognized in the third quarter of 2016.
Restructuring costs are based on managements best estimates. Although the Company does not anticipate significant changes, actual costs may differ from these estimates.
A copy of the news release is being furnished as Exhibit 99.1 to this form 8-K.
ITEM 9.01 | Financial Statements and Exhibits |
(d) | Exhibits |
Exhibits 99.1: | News release of Domtar Corporation, dated September 23, 2016. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DOMTAR CORPORATION | ||||
(Registrant) | ||||
By: | /s/ Razvan L. Theodoru | |||
Name: | Razvan L. Theodoru | |||
Title: | Vice-President, | |||
Corporate Law and Secretary | ||||
Date: | September 23, 2016 |
Exhibit 99.1
234 Kingsley Park Drive Fort Mill, South Carolina 29715
|
News Release
TICKER SYMBOL |
MEDIA RELATIONS |
INVESTOR RELATIONS | ||
(NYSE: UFS) (TSX: UFS) | David Struhs Vice-President Corporate Services and Sustainability Tel.: 803-802-8031 |
Nicholas Estrela Director Investor Relations Tel.: 514-848-5555 x 85979
|
DOMTAR OPTIMIZING FLUFF PULP PRODUCTION, STREAMLINING PLYMOUTH MILL OPERATIONS
Fort Mill, September 23, 2016 Domtar Corporation (NYSE/TSX: UFS) announced today a plan to optimize fluff pulp manufacturing at its Plymouth mill. The streamlining measures will strengthen the mills position in the global fluff pulp markets.
The restructuring, which is expected to be completed by mid-2017, includes the permanent closure of the small pulp dryer and idling of related assets, in addition to a workforce reduction of approximately 100 positions. The streamlining process will also right-size the mill to an annualized production target of approximately 380,000 metric tons of fluff pulp. The Plymouth mill will continue to produce Lighthouse Fluff, the benchmark grade for high-quality fluff pulp.
This action at Plymouth along with the start-up of fluff pulp production at Ashdown will optimize Domtars fluff pulp manufacturing network and strengthen our position in the growing fluff-pulp market, said Domtar President and Chief Executive Office John D. Williams. We remain committed to the Plymouth mill, where we have made significant investments in the past several years. These changes will prepare the mill for long-term, sustainable success.
Fluff pulp is bleached softwood cellulose fiber used worldwide in absorbent applications such as baby diapers, feminine hygiene and adult incontinence products.
About Domtar
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 10,000 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtars annual sales are approximately $5.3 billion and its common stock is traded on the New York and Toronto Stock Exchanges. Domtars principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.
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Forward-Looking Statements
All statements in this press release that are not based on historical fact are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions Forward-Looking Statements and Risk Factors of the latest Annual Report on Form 10-K filed with the SEC as updated by the Companys latest Quarterly Report on Form 10-Q. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.
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