Domtar Sells Woodland Market Pulp Mill to Investment Firm
Oct. 1, 2010 - Domtar today said that it has 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 Corporation (IGIC).
The purchase price is for an aggregate value of US$60 million plus net working capital of US$4 million.
All customary closing conditions have been met, Domtar said.
"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 Chief Executive Officer.
"Woodland, an early adopter of FSC(R) 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," Williams said.
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 approximately 300 people.
International Grand Investment Corporation (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 United States this year. IGIC is committed to maintaining and enhancing the Woodland mill's PEFC and FSC(R) certifications, to ensure sustainable and responsible fiber sourcing.
SOURCE: Domtar Corp.