First Quality plans to continue pulp operations at the Dryden mill. The acquistion secures access to "high quality fibre supplies long term," the company says.
Domtar Corporation will divest the Dryden NBSK pulp mill in Canada to US tissue and personal care products company First Quality Enterprises. The two companies entered into a corresponding agreement at the last day of February. Domtar expects the Dryden transaction to close early in the third quarter.
The deal is is subject to customary closing conditions, including regulatory approvals. 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 acquisition of Resolute Forest Products, Domtar explained.
Dryden mill runs one fibre line and produces northern bleached softwood kraft pulp with a capacity of up to 330,000 tpy. The milll also sells excess electricity to the grid.
First Quality Enterprises produces adult incontinence, household care, baby care, and feminine care products at seven sites across the US and Canada. The company plans to continue business operations at the Dryden mill. "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. We look forward to partnering with the existing mill team members, customers, suppliers, and community stakeholders to continue the mill's successful history of local engagement and economic development," said Jim Dodge, Chief Financial Officer of First Quality.
