New-Indy Containerboard announced plans to invest $240 million to convert production at its recently acquired pulp and paper mill in Catawba, South Carolina from lightweight coated paper to containerboard grades.
New-Indy acquired the Catawba mill from Resolute Forest Products in October of this year for the total purchase price of about US$300 million — $260 million in cash and the assumption of approximately $40 million of balance sheet liabilities, largely net pension benefit obligations.
“New-Indy Containerboard is excited about our acquisition of the pulp and paper mill located in Catawba, South Carolina. Our intent is to convert the existing facility from the production of communication paper products to containerboard grades,” said Rick Hartman, COO of New-Indy Containerboard.
“We want to thank the York County Council and the South Carolina Department of Commerce for the valuable assistance they provided during the purchase process. Their support is critical to the facility's continued growth and success, and we look forward to a close and long-lasting relationship with both of these entities,” Hartman said.
A statement on New-Indy's website says, “Following conversion to containerboard grades, the [Catawba] mill will produce over 600,000 tons per year of high-quality, ultra-lightweight virgin linerboard.
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