Resolute Forest Products to sell Fairmont recycled kraft pulp mill to Nine Dragons Paper

30 Aug 2018 − 

ND Paper to add another production site to its US business. The acquisition of the former American Fiber Resources recycled pulp facility in Fairmont follows on the heels of the acquistion of two pulp and paper mills from Catalyst Paper.

Resolute Forest Products has entered into a definitive agreement with ND Paper LLC, a subsidiary of China's packaging paper and board manufacturer Nine Dragons Paper, for the sale of its Fairmont recycled bleached kraft pulp mill. Resolute puts the purchase price at $55m plus certain elements of working capital, payable in cash. The company expects the transaction to be completed within the next two months.

The Fairmont mill in the US-state of West Virginia has a staff of 95 and is producing some 220,000 air-dried tonnes of recycled bleached kraft pulp used in products ranging from fine and packaging papers to tissue. According to Resolute, a significant amount of the recycled pulp produced at the Fairmont mill is processed by the the company's tissue operations in Florida.

Another US mill under Chinese ownership

Chinese paper manufacturers continue with their shopping spree in the USA. At the end of June, ND Paper had closed the acquisition of two integrated pulp and paper mills from Catalyst Paper.

In mid-August, Verso Paper signed an agreement for the sale of its idled Wickliffe fine and speciality paper mill to Global Win Capital Corporation, part of China's Shanying International Holdings group.

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