Domtar Sells Woodland Market Pulp Mill in Maine
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Domtar Corp., Montreal, Que., Canada, reports to have sold its Woodland hardwood market pulp mill, hydro electric assets, and related assets, located in Baileyville, Maine, and New Brunswick, Canada, to International Grand Investment Corp. (IGIC). The purchase price is for an aggregate value of $60 million plus net working capital of $4 million. All customary closing conditions have been met.
"The sale of the Woodland mill is part of our strategy to reduce our exposure to hardwood pulp markets. The majority of our market pulp activities are in softwood and fluff pulp grades," said John D. Williams, president and CEO. "Woodland, an early adopter of FSC certification as well as ISO 9000 and 14000, has been responsibly manufacturing quality pulp for several decades. We concluded that this transaction was in the best interest of the company, in terms of strategy, and for the mill as it continues the employment of its dedicated workforce."
Woodland was Domtar's only non-integrated hardwood market pulp mill. It has an annual production capacity of 395,000 metric tons and currently employs some 300 people.
IGIC is a U.S.-based Delaware registered company that represents international, individual investors in pulp trade and imports. This is IGIC's second pulp mill acquisition in the U.S. this year. IGIC says that it is committed to maintaining and enhancing the Woodland mill's PEFC and FSC certifications, "to ensure sustainable and responsible fiber sourcing."
Domtar is the largest integrated manufacturer and marketer of uncoated free sheet paper in North America and the second largest in the world based on production capacity. It is also a manufacturer of paper grade, fluff, and specialty pulp.
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