Domtar to halt production at two Quebec sawmills after natives block roads

Canadian Press

Thursday, September 16, 2004

MONTREAL (CP) - Domtar Inc. said Thursday it plans to temporarily shut down two lumber mills in northwestern Quebec due to a blockade by aboriginals, putting 350 people out of work.

Domtar said it will have to shut the mills on Oct. 4 because the blockade has dried up log supplies and prevented wood harvesting. The shutdown will affect mill and forestry workers.

Domtar said the dispute, which began Aug. 30, is between Algonquins and the Quebec government over the lack of a long-term forestry management agreement, but did not provide further details.

The mills involved are in the Val d'Or area.

Spokeswoman Josee Plouffe said the shutdowns could eventually affect a nearby Domtar pulp mill as well, which gets wood chips from the sawmills.

Domtar (TSX:DTC) said it's waiting for the outcome of discussions between the Algonquins and the provincial government.