Domtar Breaks Ground on $300 Million Renovation
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The Times News reports that Domtar officially entered the containerboard market on Friday with a groundbreaking ceremony for its $300 million renovation and expansion of the Kingsport mill.
The event was held at Cloud Park with numerous state and local officials and several Domtar executives, including President and CEO John Williams.
“This is an exciting day for the Kingsport mill and for Domtar, and we are glad to celebrate it in the company of many of those who are making this transformation possible,” said Williams. “The kind of collaborative spirit we’ve seen among city, county and state partners here in Northeast Tennessee is what allows successful, long-term business partnerships to flourish.”
SWITCHING TO CONTAINERBOARD
In order to keep up with changes in the market, Domtar announced last fall it would be converting its Kingsport plant from manufacturing office paper to containerboard. The company has demolished many buildings and structures on its grounds and is poised to begin construction.
The paper-to-containerboard mill transformation is a three-year, $300-million investment, with the plant expected to come online during the first quarter of 2023 — the year that marks Domtar’s 175th anniversary.
Once complete, the mill will house the second-largest containerboard recycling machine in North America, with the capacity to produce approximately 600,000 tons per year.
“In Kingsport, (the mill) can be the go-to supplier to more than 60 independent box makers in the region. That represents 8 million tons of demand for containerboard,” Williams said. “We’re perfectly placed right in the heart of our potential marketplace.
“This endeavor is a perfect example of what could happen when we work together to achieve the best outcome for everyone involved.”
