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Domtar to Shutter Waco Diaper Mill

Plan is part of cost-savings efforts in personal care business

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By: Karen McIntyre

Editor, Nonwovens Industry

Domtar has announced it will permanently close its Waco, TX diaper manufacturing faility as  part of cost cutting efforts in its personal hygiene business.

“Escalating raw material costs continue to compress our margins in adult incontinence and baby diapers,” says CEO John Williams. “As a result, we are accelerating the pace of actions that will improve margins and EBITDA, with a plan that is expected to generate annual benefits of approximately $25-30 million, with full effect by the end of 2020. This will include headcount reductions, the permanent closure of our Waco, TX facility, and commercial and operational initiatives. The sum of these actions will reduce our cost base and strengthen our long-term competitive position.”

The facility currently employs 145 people. Domtar purchased the site, which opened in 2009, through the acquisition of Associate Hygienic Products, in 2013. The site will likely be closed in mid-2019.

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