GRENADA, Mississippi (From news reports) -- Domtar Corporation will indefinitely idle operations at its Grenada, Miss., paper mill in September, marking a significant transition for an industrial cornerstone that has stood at 1000 Paper Mill Rd., for decades.

Officials with Domtar, a leading North American manufacturer of diversified forest products, which purchased Resolute Forest Products in March 2023, announced the decision to its employees Wednesday morning, citing a response to newsprint market conditions.

According to officials, the decision is part of Domtar's ongoing efforts to align its operations with current business conditions. The company is taking steps to ensure a safe and orderly wind-down of production and is committed to supporting the more than 160 employees, their families and the Grenada community through career transition resources, benefits guidance and transparent communication during this period.

The company says the Grenada mill houses one of the most modern, high-speed and efficient newsprint mills in North America.

Domtar employs 181 people in Grenada and the company says it it committed to a safe and orderly wind-down of operations, including transition support for employees.

The City of Grenada said in a statement, "...in partnership with our state and regional allies, is mobilizing resources to assist affected workers, support local businesses, and pursue new opportunities for economic growth and job creation".

The facility was built in 1989, and Domtar says it has an annual economic impact of $316 million dollars.