Rothschild Dam FAQs
How many jobs does Domtar support directly and indirectly in Wisconsin?
- Domtar’s Rothschild and Nekoosa mills support more than 3,500 local jobs*, including approximately 750 direct employees between the two facilities.
- Domtar’s Rothschild and Nekoosa mills provide an estimated economic impact of $1 billion* annually to the local economies in the state of Wisconsin.
*Using the National Association of Manufacturers’ (NAM) methodology
Where does Domtar source the wood for its Wisconsin mills? Would this change if funding was secured?
- 100% of Domtar’s roundwood and wood chips for the Rothschild and Nekoosa mills are sourced from Wisconsin and represent the majority of the fiber utilized at the facilities.
- Combined, the Rothschild and Nekoosa mills spend over $60 million annually on wood fiber.
- Between Rothschild and Nekoosa, Domtar purchases an average of 850,000 tons of pulpwood and wood chips annually from hundreds of suppliers.
- Rothschild and Nekoosa do purchase specialized market pulp from a range of suppliers, which is required to produce their wide range of paper products.
- Securing a cost-sharing partnership for the Rothschild Dam would not impact Domtar’s wood sourcing practices.
Dam background?
- The hydroelectric dam was built in 1912 and initially used to power the Rothschild Mill and channel pulp wood from upstream to the mill for pulp and paper manufacturing.
- Lake Wausau, a popular recreation site for both locals and visitors, was created by the installation of the dam.
- The dam provides other community benefits, including private residence/tax revenue, reservoir management and, most importantly, public safety related to flood control.
- The Rothschild dam spans 663 feet across the Wisconsin River.
- More than a century of service has impacted the 276-foot-long Timber Crib Spillway section of the Rothschild Dam.
- This section of the dam was last replaced in 1964, and patchwork repairs are no longer sufficient for safety reasons per the Federal Energy Regulatory Commission (FERC).
- The remaining 387-foot concrete section of the dam does not need replacement.
- The Rothschild Mill — and Domtar’s Nekoosa Mill located less than an hour away — have served as major providers of employment and economic growth in north central Wisconsin. Together, the mills:
- Support more than 3,500 local jobs*, including approximately 750 direct employees.
- Provide an estimated economic impact of $1 billion* annually to the local economies in the state of Wisconsin.
*Using the National Association of Manufacturers’ (NAM) methodology
Why is Domtar replacing the dam now?
- More than a century of service has impacted the 276-foot-long Timber Crib Spillway section of the Rothschild Dam.
- This section of the dam was last replaced in 1964, and patchwork repairs are no longer sufficient per FERC.
- Since the Timber Crib Spillway section was replaced in 1964, the Rothschild Mill has invested $12 million in maintenance and repairs to extend its life.
- The remaining 387-foot concrete section of the dam does not need replacement.
What role does the dam play in the mill’s daily operations?
- The dam and its related hydro generation are no longer part of Domtar’s core business.
- The dam’s operational value to the mill has steadily decreased in recent decades.
- The financial benefit of the dam for operations is less than $500,000 annually.
- While the financial benefit of the dam for Domtar’s operations is minimal, the benefit to the community surrounding Lake Wausau continues to grow.
Does the Rothschild Dam produce electricity for the surrounding communities?
No. Any electricity produced by the dam is consumed within the mill, which offsets the amount of electricity Domtar purchases from the utility company. Due to the dam’s limited generation capacity — providing less than 10% of the mill’s total energy needs — combined with its maintenance costs, internal power generation at the Rothschild Mill is considered cost neutral.
What is the impact if Domtar must cover the full project cost?
- Investing $84 million to modernize the Timber Crib Spillway section of the dam will limit Domtar’s ability to adequately invest in its Rothchild and Nekoosa mills — which, at 115 and 142 years old, respectively — need significant infusions of capital to support competitiveness.
Will Domtar use the money to invest in their mills if they don’t have to use it for the dam?
- Yes, money not spent replacing the Timber Crib Spillway would allow for other much-needed financial investments to remain competitive.
- By securing these cost-sharing partnerships, Domtar will commit to investing $100 million in north central Wisconsin via its Rothschild and Nekoosa manufacturing operations over the next three years.
What long-term commitments can Domtar make to stay in Wisconsin (i.e. not move the operations out of state)?
- By securing these cost-sharing partnerships, Domtar will invest $100 million in north central Wisconsin via its Rothschild and Nekoosa manufacturing operations over the next three years.
Is there a dollar amount needed before Domtar can start the project?
- No money is needed before Domtar can start project – project has a regulatory timeline and will proceed as scheduled.
When will the work begin and how long will it take to complete?
- Depending on approvals, work could begin in mid-2025.
- The project will take approximately four years to complete.
Will drawdowns of Lake Wausau be necessary?
- Depending on the construction approach approved by regulators, some level of drawdown will likely be necessary.
- Domtar will work to limit the impact on area businesses and homeowners.
How much is spent on the concrete section of the dam annually?
- Domtar averages $275,000/year maintaining the concrete section of the dam.
How many businesses and homes would be impacted if the dam wasn’t repaired?
- There is a significant socioeconomic impact, both direct and indirect.
- Properties located directly on the water would be impacted.
- Many businesses, recreational opportunities, local governmental agencies and real estate would all be indirectly impacted.
- To understand the exact number, reviews of floodplain and inundation maps are needed.
Is Domtar contributing financially to the project?
- Yes, Domtar is committed to completing the project and is proposing to pay one-third of the entire project cost.
- Domtar cannot fully underwrite a project that distracts from its operations as a major provider of employment and economic growth in north central Wisconsin.
- By securing these cost-sharing partnerships, Domtar will commit to investing $100 million in north central Wisconsin via its Rothschild and Nekoosa manufacturing operations over the next three years.
Why hasn’t Domtar been planning for this eventual repair?
- Domtar has been maintaining the project accordingly and has been in constant contact with regulatory agencies.
- The company has been exploring all possible options and working with multiple engineering firms and regulatory agencies to identify potential solutions for several years.
Will Wisconsin-based contractors be used?
- Yes, local contractors will be used to the fullest extent possible.
Who are the contractors working on the project?
- AECOM is the engineering firm working with a construction firm based in Wisconsin as the general contractor.
- Subcontracting is yet to be determined, but the project team is committed to using local contractors where possible.
What is the total cost and breakdown of those costs?
What if Domtar doesn’t get financial assistance to replace the section of the dam?
- Domtar needs to replace the section of the dam; financial assistance helps ensure public safety and continued economic and recreational benefits for the communities surrounding the mill.
Will there be another follow-up request for financial assistance?
- That is not anticipated.
- Every effort is being made by all to fully explore and engineer potential solutions, as well as anticipate any discovery work.
- By securing these cost-sharing partnerships, Domtar will commit to investing $100 million in north central Wisconsin via its Rothschild and Nekoosa manufacturing operations over the next three years.
What is the cost to local homeowners and businesses, if any?
- No direct cost to local homeowners and businesses is anticipated, other than any potential indirect cost implications if a drawdown is needed to execute the project.
What if Domtar begins but doesn’t finish the project?
- Domtar has every intention to finish the project.
How many new jobs will this create?
- The community benefits more from the dam than Domtar. These benefits include jobs unrelated to mill operations such as reservoir management and flood control, as well as community, small business and recreational use.
- Securing these cost-sharing partnerships will support more than 3,500 local jobs*, including approximately 750 direct employees.
- By securing these cost-sharing partnerships, Domtar will commit to investing $100 million in north central Wisconsin via its Rothschild and Nekoosa manufacturing operations over the next three years.
*Using the National Association of Manufacturers’ (NAM) methodology