Domtar Signs Agreement With Voith to Supply Equipment for Kingsport Mill Conversion to Containerboard
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Yahoo Business reports that Domtar Corporation (NYSE: UFS) (TSX: UFS) announced it has signed an agreement with Voith to provide equipment and technical services to convert the paper machine at its Kingsport, Tennessee, mill to produce recycled containerboard including high-performance lightweight packaging grades, as well as industry standard grades.
In addition to being a full-line supplier to the paper industry, Voith is also recognized as a leader in the containerboard machinery business. The company will play an important part in Domtar's entry into the containerboard market by helping build one of the most modern recycled containerboard machines in the world, able to set industry benchmarks in recycled containerboard strength and convertibility.
In August, Domtar also signed an agreement with Voith to provide a complete recycled stock preparation system for the Kingsport Mill including water, sludge and reject handling systems which will maximize both efficiency and quality.
The mill's conversion to is expected to be complete in 2022. Once complete, the Kingsport Mill will become North America's premier lightweight containerboard facility -- able to produce and market about 600,000 tons of high-quality recycled linerboard and corrugated medium annually. That level of capacity will make Kingsport the second-largest recycled containerboard mill in North America.
"We are pleased to continue our partnership with Voith as we repurpose our Kingsport Mill to enter the containerboard market," Domtar President & CEO John Williams said. "Voith is an ideal partner for this project, able to provide the entire scope of supply from raw material receipt to finished product."
"The Voith team is excited to work with Domtar on this state-of-the-art conversion. We worked closely with their teams to design the needed technical scope to produce the demanding grades they are planning for the machine and the market they are targeting," stated Dr. Michael Trefz, President Voith Paper Division Projects. "Conversion projects like this offer unique challenges and we're proud that Domtar recognized our capabilities, experience and expertise in supporting this type of project."
