Domtar announced that it has entered into an agreement with First Quality Enterprises whereby First Quality will acquire Domtar's Dryden pulp mill in Northwestern Ontario, Canada. The purchase price was not disclosed.
The Dryden Mill has the capacity to produce 327,000 air-dried metric tons per year of Northern Bleached Softwood Kraft (NBSK) pulp.
First Quality has made clear to Domtar its commitment to the Dryden Mill, its employees and the surrounding community and that First Quality fully intends to continue business operations consistent with past practices.
"First Quality saw this as an excellent strategic investment given the knowledgeable leadership team, premium quality NBSK coming from the mill, and the access and availability to high quality fiber supplies long term," said Jim Dodge, Chief Financial Officer of First Quality.
The sale of the Dryden Mill is a requirement under the consent agreement between Domtar and the Canadian Competition Bureau in connection with its review of Domtar's planned acquisition of Resolute Forest Products.
The Dryden transaction, expected to close early in the third quarter, is subject to customary closing conditions, including receipt of required regulatory approvals and the closing of the Resolute Forest Products Inc. transaction.
The Resolute transaction remains on course to close in the first half of 2023, subject to the satisfaction or waiver of the other conditions to the closing of the merger.
TAPPI
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