UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
February 22, 2024 /
(Date of Report/Date of earliest event reported)
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ITEM 2.05 Costs Associated With Exit or Disposal Activities
On February 21, 2024, Domtar Corporation announced that it will indefinitely curtail paper operations at its subsidiary’s (Domtar A.W. LLC) Ashdown, Arkansas, facility. The Ashdown Mill’s A62 paper machine and associated sheeter will be indefinitely idled by the end of June, reducing Domtar’s annual uncoated freesheet capacity by 216,000 short tons. The curtailment is not expected to result in a workforce reduction.
The curtailment will result in an aggregate pre-tax charge to earnings of approximately $32 million, which includes an estimated $31 million in non-cash charges relating to the accelerated depreciation of the carrying amounts of manufacturing equipment and the write-off of related spare parts, and $1 million related to other costs. These charges are expected to be incurred in the first half of 2024.
Curtailment and restructuring costs are based on management’s best estimates. Although the Company does not anticipate significant changes, actual costs may differ from these estimates due to subsequent business developments. As such, additional costs, further write-downs and impairment charges may be required in future periods.
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: | Press release of Domtar Corporation, dated February 21, 2024. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
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Exhibit Index
| Exhibit No. |
Exhibit | |
| 99.1 | Press Release of Domtar Corporation, dated February 21, 2024. | |
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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/ Nancy Klembus | |||
| Name: | Nancy Klembus | |||
| Title: | Senior Vice-President, General Counsel and Corporate Secretary | |||
| Date: February 22, 2024 | ||||
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