June 10, 2009 (FinancialWire) — Domtar Corp. (NYSE: UFS) said it will be reopening its Woodland pulp mill in Baileyville, Maine. Around 300 employees will be called back for the restart of pulp production, which is targeted to resume the week of June 22.

The mill has an annual hardwood pulp production capacity of 398,000 air dry metric tons.

Domtar said on March 5 that it was closing the mill for an undetermined period due to weak global pulp demand, historically high inventory levels and depressed prices.

The company said that its pulp inventory levels have since been “substantially reduced.” Domtar credits the reopening to “timely benefits” from the refundable tax credits for the production and use of alternative bio fuel mixtures, and other conditions such as stronger global demand, improving prices and favorable currency exchange rates.

Montreal-based Domtar is a manufacturer and marketer of uncoated freesheet paper and is also a manufacturer of papergrade, fluff and specialty pulp. The company designs, manufactures, markets and distributes a range of business, commercial printing and publication as well as converting and specialty papers.

Domtar also produces lumber and other specialty and industrial wood products. The company employs nearly 11,000 people.

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