Hundreds of workers at the Grenada paper mill will soon lose their jobs.
Domtar, a North American manufacturer of forest products, announced Wednesday that it is indefinitely idling its operations in Grenada in September. The company cited the current paper printing market as its primary reason for halting functions at the facility. Domtar took over the mill in 2023 after purchasing Resolute Forest Products and currently employs 181 people.
Domtar boasted that its Grenada mill, which was built in 1989, operates one of the “most modern, high-speed, and efficient” newsprint machines in North America. The mill produces a high-quality, cost-competitive product sold to newspaper publishers across the Southeastern U.S., Mexico, and Latin America. However, the company has recently decided to scale back to align its operations with current business conditions.
“This decision is part of Domtar’s ongoing efforts to align its operations with current business conditions,” a release from the company reads. “The company is taking steps to ensure a safe and orderly wind-down of production and is committed to supporting employees, their families, and the Grenada community through career transition resources, benefits guidance, and transparent communication during this period.”
City officials in Grenada are concerned about the business’s decision to cease operations but expressed gratitude for the contributions Domtar made to the local economy over the years. In the meantime, the city plans to work with state and regional allies to mobilize resources to assist affected workers, support local businesses, and pursue new opportunities for economic growth and job creation.
“We recognize the significant contributions Domtar has made to Grenada’s economy and community over the years, and we appreciate their commitment to provide transition support for their workforce during this difficult time,” an official statement from the city reads.
“We are committed to working closely with Domtar, our Congressional Delegation, the Mississippi Development Authority, workforce development agencies, and other partners to ensure that our citizens have access to the resources they need,” the statement continued. “While this is a difficult moment, Grenada has a proud history of resilience and strength. Together, we will face this challenge head-on and continue building a strong future for our community.”
Matthew Harrison, who heads the Greater Grenada Partnership, acknowledged Domtar’s announcement as a moment of transition for the local community but maintained that it will not be a death nail in the community’s economic development efforts.
“While the closure is difficult, it is not the end of Grenada’s story. Our community has proven time and again that we are resilient, innovative, and forward-looking,” Harrison stated. “Grenada continues to attract new investment, grow our manufacturing base, and create opportunities for the future.
“The Greater Grenada Partnership is already working with state and local leaders, workforce agencies, and potential new investors to ensure that our people and our industrial assets are positioned for success. This is a time not only to reflect on the contribution the Domtar/Resolute team has made but also to look ahead with confidence. Grenada’s future remains bright, and together we will continue to build a stronger, more diverse economy for generations to come.”
Harrison’s optimism that the community’s economy has a bright future is not unfounded. In recent years, Milwaukee Tool opened a $60 million manufacturing center, thermal management company Modine announced a $38 million expansion, and officials broke ground on the $4 billion SouthPoint Mississippi Industrial Park.
