Domtar will idle its Coosa Pines pulp mill in Talladega County, Alabama, by mid-May 2026 — a decision that marks the end of 75 years of continuous operation and eliminates 285 jobs from one of east Alabama’s most significant industrial employers. The pulp mill closure in Alabama, announced March 24, removes roughly $569 million in annual economic activity from the region and shuts down a facility that has been producing fluff pulp for global absorbent products markets since 1976.
The company cited two interlocking pressures as the cause: weak market conditions for fluff pulp and the high cost of maintaining aging equipment at a mill that has been running continuously since 1950.
Domtar Cites Market Conditions and Aging Equipment
“The Coosa Pines mill has been challenged by difficult market conditions, as well as its aged assets, resulting in high costs of maintaining and operating the facility.”
— Domtar Corporation, official press release, March 24, 2026
The idling covers both the Coosa Pines fluff pulp mill and the adjacent Talladega wood chip mill, which supplies raw fiber to the pulp operation. Together, the two facilities employ 285 workers in Talladega County. Domtar has framed the move as an indefinite idling rather than a permanent closure, though no restart timeline or conditions have been specified.
Privately held Domtar — which is owned by investor Jackson Wijaya and operates more than 60 facilities across North America employing approximately 14,000 people — produces pulp, paper, packaging, tissue, lumber, and wood products at a combined annual capacity of 7.2 million metric tonnes. The Coosa Pines mill contributed an estimated 270,000 metric tonnes of fluff pulp annually to that output.
75 Years on the Coosa River
The Coosa Pines mill has a history that predates the modern pulp industry in the American South. When it opened in 1950 as a joint venture between Kimberly-Clark and regional newspaper publishers, its primary mission was producing newsprint for Southeastern U.S. print outlets. For more than two decades, the mill fulfilled that purpose, printing the paper that carried local news to communities across the region.
In 1976, the facility underwent a major transformation. A new kraft line, recovery boiler, and pulp dryer were installed, shifting production toward fluff pulp — the absorbent material used in diapers, feminine hygiene products, medical pads, and other consumer goods. The mill became one of the leading fluff pulp producers in North America, supplying customers worldwide.
A $63 million environmental upgrade completed in 2000 modernized the facility to meet “cluster rule” standards, extending its operating life well into the 21st century. But the combination of decades-old core infrastructure and a challenging market environment ultimately made continued operation economically unworkable for Domtar.
The economic ripple effects of a mill closure of this scale extend well beyond the 285 direct jobs. Supplier relationships, logging contracts, trucking routes, local retail spending, and tax revenues are all affected when a facility of this size winds down. The Coosa Pines mill’s estimated $569 million annual economic footprint gives a sense of how deeply the closure will be felt across Talladega County and surrounding communities.
Workers and Community Mobilize
Domtar has committed to providing “career transition resources, benefits guidance, and open communications during this period” as the wind-down progresses through mid-May. The company has not publicly disclosed severance terms or details on whether displaced workers will receive extended benefits.
On the community side, chambers of commerce in Sylacauga, Childersburg, and Talladega have coordinated a regional response to connect affected workers with new employment opportunities. Career fairs, training resources, and job placement services are being organized across the county. The Talladega Chamber of Commerce is actively working to identify nearby employers who may absorb some of the displaced workforce.
The closure follows a pattern seen in other parts of the U.S. South, where older pulp and paper infrastructure has struggled to compete as market conditions shift. South Carolina’s timber industry has similarly faced pressure from mill closures in recent years, and analysts have noted that facilities without recent capital investment face a structural disadvantage in softening commodity markets.
Domtar itself has not been immune to broader restructuring. The company previously announced plans to convert its Kingsport, Tennessee manufacturing operations, reflecting an ongoing effort to adapt its North American footprint to evolving demand patterns.
What Comes Next for Coosa Pines
Domtar has not indicated what it intends to do with the Coosa Pines property after idling. The term “indefinitely idle” leaves open the possibility of a future restart, sale, or conversion — outcomes that depend largely on whether fluff pulp market conditions recover and whether any investment in aging assets could be justified. For now, the phased wind-down continues toward a mid-May target.
For the 285 workers and the broader Talladega County economy, the closure of a facility that has operated for 75 years represents a significant and immediate disruption — one that community leaders and workforce agencies are working urgently to address.
The Coosa Pines mill’s closure is a reminder that market-driven idlings can end careers, alter tax bases, and reshape communities regardless of a facility’s legacy or history. How quickly east Alabama’s workforce can find new footing will shape the region’s economic trajectory for years to come.