Pulp and paper firm Domtar Corp. says it's exiting the coded groundwood paper business by closing a U.S.-based paper mill, affecting 219 people.
The Montreal-based company says operations at the mill in Columbus, Miss., will shut down by the end of April.
Domtar says market conditions for coded groundwood paper are "challenging" and says the mill is suffering from a weak cost position.
Domtar says it's selling its coded groundwood paper product lines produced in Columbus, as well as the mill's inventory and book of business, to NewPage Corp. for an undisclosed amount.
Domtar has faced a number of challenges in recent years as demand for paper products has slumped.