Domtar Corporation CEO John D. Williams says there are no plans to restart the paper machines at the Dryden mill, just yet.

Visiting Dryden, May 22, to greet the Prime Minister’s announcement of funding for a renewable energy project at the Dryden operation, Williams said Dryden’s operations will stay focused on pulp for the time being.

“To be frank, we think that’s the future of this mill going forward,” said Williams. “We’ve moved out of hardwood into softwood specifically to be really competitive in the pulp market where we liked the end-use markets for the softwood pulp.”

Williams describes a bit of a difficult year for pulp markets in 2009, though Domtar’s U.S. mills benefited substantially from federal alternative fuel tax credits – accounting for $159 million in subsidies in the third quarter alone.

On the Canadian side of the border, federal government response to the controversial U.S. subsidy program has resulted in an additional $143 million to Domtar in funding for energy efficiency projects – approximately $23 million of which is directed towards Dryden operations.

A second steam condensor in its wood waste boilers and a second high pressure turbogenerator will generate 128,000 mega-watt hours of electricity per year, nearly balancing the mill’s production and consumption of energy.

“What it really means is that we’ll be more cost competitive – we think by about $10 a tonne in terms of the value to us,” said Williams. “In addition, over time we’ll have the opportunity to actually sell power back into the grid when that becomes possible. It will aid the competitiveness of the mill for the long-term.”

- Chris Marchand