Study puts USD 7bn regional cost on Domtar's Coosa Pines mill idling
A study cited by the Wall Street Journal estimates rural Alabama will lose almost USD 7bn in economic activity over the next decade because of Domtar's idling of its Coosa Pines fluff and market pulp mill in Childersburg, shut since May 2026 after a 24 March 2026 announcement citing weak markets and aged assets. Domtar's own fact sheet puts the mill's annual economic impact at USD 569m and its market pulp capacity at 270,000 tonnes. The closure adds to a run of North American softwood kraft cuts, including Domtar's own idling at Port Mellon, British Columbia, and Canfor's permanent shutdown of its Northwood mill in Prince George.
Why this mattersRepeated Southern and Canadian pulp mill closures are compressing timberland values and pulpwood pricing, tightening wood-fibre economics across the paper and packaging supply chain.
- Domtar's Coosa Pines mill in Childersburg, Alabama has been idled since May 2026 after a 24 March 2026 closure announcement citing difficult markets and aged assets.
- A study taken to Alabama's congressional delegation projects almost USD 7bn in lost regional economic activity over the next decade from the closure.
- Domtar's own fact sheet lists the mill's annual economic impact at USD 569m and its market pulp capacity at 270,000 metric tonnes.
- Reported job losses range from 250 to 285, against Domtar's own fact-sheet staffing figure of 275.
- Domtar is separately idling 400 jobs and 380,000 metric tonnes of northern bleached softwood kraft capacity at Port Mellon, British Columbia, by mid-October 2026.
- Canfor confirmed in July 2026 the permanent closure of its Northwood mill in Prince George, removing 300 jobs and 300,000 tonnes of kraft capacity.