The paper mill at Thurso, Que. is closing its operation at the end of May for up to six months, affecting 300 workers.

Fraser Papers owns the mill, near the Ottawa River along Highway 148 east of Gatineau. The company warns of a permanent closure if market conditions fail to dramatically improve.

Pulp shipments from the mill last quarter fell 31 per cent from the previous year. U.S government subsidies and high inventories are hurting profits, according to Fraser Papers.

The company operates six paper and pulp mills and four sawmills in Canada and the United States, employing 3,750 total workers.

A mill at Madawaska, Maine was been forced to reduce operations and lay off 100 employees last week.