Domtar benefits from rival’s mill closure
Sept. 13, 2013 - Shares of Domtar, a Montreal-based copy paper producer, rose almost 16 per cent on Wednesday on the news of its rival shutting a mill. The news of the closure comes only one week after Domtar shares hit a two-year low.
International Paper closed its mill in Alabama thus eliminating eight per cent from the North American supply capacity and helping to rebalance a declining market. The demand for uncoated freesheet in North America has been declining since 1999 but the decline has recently accelerated as consumers switch to electronic billing.
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