Domtar has announced a temporary reduction in its lumber production for the first quarter of 2026, citing difficult market conditions, ongoing U.S. tariffs and persistent economic uncertainty.
The company plans to curtail output by 150 million board feet, a measure that will affect its facilities in Quebec, Ontario and the United States.
Luc Thériault, Chief Executive of Wood Products and President – Canada, at Domtar.According to the company, the move primarily reflects the current weakness in North American lumber demand. “Demand for lumber remains low, which requires us to adjust our production levels in line with market conditions,” said Luc Thériault, Chief Executive of Wood Products and President – Canada, at Domtar.
Management acknowledges that the adjustment will not be without consequences for the company’s stakeholders. “While this decision is necessary, we are fully aware of the impact it will have on our employees, contractors, suppliers and the communities in which we operate,” Thériault added.
Domtar stresses that this is a temporary measure designed to better align production with current market realities. The company says it will continue to closely monitor economic and commercial conditions and will adjust its production plans accordingly in the coming months.
Domtar is a major privately held forest products company employing nearly 14,000 people at more than 60 facilities across North America. It has an annual production capacity of 7.2 million metric tons of pulp, paper, packaging and tissue, as well as about 3 billion board feet of lumber and other wood products. Domtar is owned by investor Jackson Wijaya.
