8-K
Domtar CORP DE false 0001381531 0001381531 2020-04-27 2020-04-27

 

 

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

April 27, 2020

(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) 802-7500

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act: Common Stock, Par Value $0.01 Per Share ; Common stock traded on the New York Stock Exchange; trading symbol UFS.

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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))

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


ITEM 7.01 Regulation FD Disclosure

The following information, including the exhibit described below, shall not be deemed “filed” hereunder for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On April 27, 2020, Domtar Corporation issued a news release announcing that it will temporarily idle the operations of its Hawesville, Kentucky mill beginning May 5th, 2020 until the early part of July, in light of the business conditions created by the COVID-19 pandemic. The press release is furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1:    News release of Domtar Corporation, dated April 27, 2020

Exhibit 104:    Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibit Index

Exhibit
No.

   

Exhibit

         
 

99.1

   

News Release of Domtar Corporation, dated April 27, 2020

         
 

104

   

Cover Page Interactive Date File (embedded within the Inline XBRL document)

 

2


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: April 27, 2020

 

3

EX-99.1

Exhibit 99.1

 

LOGO      

234 Kingsley Park Drive

Fort Mill, South Carolina 29715

 

News Release

 

 

 

TICKER SYMBOL    INVESTOR RELATIONS    MEDIA RELATIONS
(NYSE: UFS) (TSX: UFS)   

Nicholas Estrela

Director

Investor Relations

Tel.: 514-848-5049

  

David Struhs

Vice-President

Corporate Services and Sustainability

Tel.: 803-802-8031

 

 

DOMTAR PROVIDES UPDATE ON CAPACITY REDUCTION PLAN TO ADDRESS ONGOING COVID-19 BUSINESS CONDITIONS

Company to temporarily idle Hawesville, Kentucky mill

Fort Mill, SC, April 27, 2020 – Domtar Corporation (NYSE: UFS) (TSX: UFS) today provided an update to its previously announced capacity reduction plan, which is designed to temporarily right-size production capacity in light of the business conditions created by the COVID-19 pandemic.

Domtar plans to temporarily idle the operations of its Hawesville, Kentucky mill beginning May 5th, 2020. The company expects to restart the H1 paper machine in June 2020, while the H2 paper machine will remain idled until July 2020. The temporary shutdown will reduce Domtar’s uncoated freesheet paper production capacity by approximately 83,000 short tons. As a result of the shutdown, Domtar will temporarily lay off approximately 400 employees at the Hawesville mill.

This incremental action follows Domtar’s idling of its Kingsport, Tennessee, mill and the A62 paper machine at its Ashdown, Arkansas mill. Combined, the temporary shutdowns will reduce production capacity by approximately 227,000 short tons of uncoated freesheet paper. The Company anticipates inventory to be at appropriate levels after this downtime.

“Throughout the COVID-19 pandemic, we have been actively monitoring the impacts to our business and taking methodical steps to optimize capacity in the current environment. We believe it is appropriate to take the additional step of temporarily idling our Hawesville mill in light of reduced paper demand. We are optimistic that we have taken the right actions to effectively manage the business through these evolving market conditions,” said John D. Williams, President and Chief Executive Officer.

“We regret that this temporary action will have an impact on our exceptional people and their families. We are doing everything we can to help them through this unprecedented period, and we have great confidence in the long-term strength and viability of our paper mills,” said Mike Garcia, President Pulp and Paper division.


Beyond these temporary shutdowns, all of Domtar’s other facilities remain fully operational and shipments continue to proceed without disruption. The health and safety of Domtar’s employees remains its central focus as the Company works to operate its business as efficiently as possible to meet the needs of its customers.

For more details on how Domtar is responding to the COVID-19 pandemic, please visit the Business Continuity section of Domtar’s website.

 

 

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 9,700 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. Domtar’s annual sales are approximately $5.2 billion and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.    

Forward-Looking Statements

Some of the statements in this news release are forward-looking statements. These forward-looking statements include statements about the duration of the idling of the uncoated freesheet paper production capacity and the impact of the COVID-19 pandemic on our business and demand for our paper products. These forward-looking statements are generally denoted by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “aim,” “target,” “plan,” “continue,” “estimate,” “project,” “may,” “will,” “should” and similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from historical results or those anticipated. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will occur, or if any occur, what effect they will have on our results of operations or financial condition. Some of the factors that could materially affect our results of operations or financial condition include the COVID-19 pandemic; general economic and industry conditions affecting our paper business; such as competition, demand for our paper products, and product pricing; as well as those identified under Item 1A. Risk Factors in Domtar’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission and available at the SEC’s website at “www.sec.gov”. You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made. Unless specifically required by law, Domtar Corporation disclaims any obligation to update or revise these forward-looking statements to reflect new events or circumstances.

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Apr. 27, 2020
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Entity Registrant Name Domtar CORP
Entity Incorporation, State or Country Code DE
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Entity Central Index Key 0001381531
Document Type 8-K
Document Period End Date Apr. 27, 2020
Entity File Number 001-33164
Entity Tax Identification Number 20-5901152
Entity Address, Address Line One 234 Kingsley Park Drive
Entity Address, City or Town Fort Mill
Entity Address, State or Province SC
Entity Address, Postal Zip Code 29715
City Area Code 803
Local Phone Number 802-7500
Title of 12(b) Security Common Stock, Par Value $0.01 Per Share
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