Domtar has announced it will permanently close its Waco facility, leading to over 100 employees losing their jobs.
There are currently 145 people working in the facility.
“Its just a very challenging business environment right now,” said Tammy Water, the Communication Manager for Domtar.
She says the company decided it needed to make a plan to improve the profit margin after their third quarter meeting.
One thing that came out of that plan was closing the Waco plant.
“There’s just numerous factors that play into that and fell into why that decision was made and why that plan was put into place,” she said.
Some of those factors she says are an increase in the cost of raw materials and a decline in the rate of babies being born.
“You know we have a great team in Waco and that’s was makes this decision so hard and difficult but we are committed to working with these employees,” she said.
Waters says workers have the opportunity to work at other Domtar locations or they can also accept the company’s separation package.
“So we’re just committed to making sure that the next few months during this transition is as smooth as possible for our employees,” she said.
Spokesperson Tammy Waters said Thursday the closure is expected to occur in mid to late 2019.
In their quarterly review press release, Domtar announced their earnings for the third quarter were up, but because of what were termed “escalating raw materials costs that continue to compress our margins in adult incontinence and baby diapers “they will be taking actions that include the closure of the Waco plant.
The release says “the sum of these actions will reduce our cost base and strengthen our long-term competitive position.”
The Waco facility manufactures personal care products including diapers and books to families in need through local organizations such as the Waco Diaper Bank and the Talitha Koum Institute.
They also worked with the Student Conservation Association to help clean up Cameron Park, refurbish playgrounds, plant trees, take away debris and clear up hiking trails.
Employees have been involved in community efforts including such things as donation of books to Talitha Koum and diapers to the Waco Diaper Bank
Domtar has been an employer in Waco since 2013 when it bought out the facility at 2101 Texas Central Parkway from Associated Hygenic Products, at the time saying it would allow the company to expand in to other markets, including baby diapers.
AHP had come to Waco in 2009 and had seen two expansions before being bought by Domtar.