Sappi to acquire Rayonier's Matane pulp mill

Alfeld mill in Germany is part of Sappi's Packaging
and Speciality Papers business in Europe; photo courtesy of Sappi
01 Aug 2019 − 

The acquisition of the Matane pulp mill will help Sappi to increase pulp integration of its North American and European packaging businesses, the company announced.

Sappi Limited has signed an agreement with Rayonier Advanced Materials on the acquisition of Rayonier's Matane high-yield hardwood pulp mill in Matane, Quebec. Matane pulp mill has an annual capacity of 270,000 metr.t of high-yield hardwood pulp used to make coated and uncoated printing papers, paperboard, linerboard, and tissue.

Sappi puts the purchase price for the Matane mill at $175m. The deal is expected to be concluded in the fourth quarter of the year, subject to approval of regulatory authorities.

"This transaction represents an opportunity to increase Sappi's pulp integration for both its North American and European packaging businesses. The increased pulp integration will lower Sappi's costs of pulp, reduce the volatility of earnings throughout the pulp cycle and provide certainty of supply," Sappi announced.

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