Fortress Paper closes in escrow the acquisition of Domtar's Lebel-sur-Quévillon NBSK pulp mill

Fortress Specialty Cellulose mill in Thurso,Quebec.
Source: Fortress Paper
15 Jun 2012 − 

Fortress Paper will rebuild and reopen Domtar’s non-operating NBSK pulp mill in Quebec to raise its total dissolving pulp capacity by 250,000 tpy.

Fortress Paper is announcing the escrow closing for the acquisition of Domtar’s Lebel-sur-Quévillon NBSK pulp mill. According to Fortress Paper, its wholly owned subsidiary Fortress Global Cellulose has closed in escrow the asset purchase agreement previously entered into with Domtar and the Ministry of Economic Development, Innovation and Export Trade of Quebec. The acquisition is still subject to a union ratification vote on the collective agreements, Fortress Paper reported. However, the company believes that a successful union ratification will be obtained next week.

Fortress Paper plans to invest some CAD222m over the next two to three years to convert Domtar’s non-operating 300,000 tpy NBSK pulp mill into a 250,000 tpy dissolving pulp mill. The company has already secured a CAD132m project financing loan with Investissement Québec. Another CAD25m will be provided by Fonds de solidarité FTQ.

Fortress Paper runs one specialty pulp mill in Thurso, Quebec, offering a capacity of 200,000 tpy of dissolving pulp for use in the viscose fibre indutry. Once Lebel-sur-Quévillon pulp mill becomes fully operational, Fortress Paper’s annual dissolving pulp capacity will increase to 450,000 air-dried metric tonnes, the company explained.

EUWID Pulp and Paper keeps busy professionals up-to-date on the latest news from European pulp and paper markets.

⇒ Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.

Tags of this news:

previous − Burgo Avezzano suspends production on PM 1 again

Suzano to build biomass boiler at Mucuri plant  − next