<b>American Tissue Affiliate Purchasing Ponderosa Fibers</b>

An affiliate of American Tissue Inc. announced plans to purchase the assets of Ponderosa Fibers of America mills. The acquisitions are subject to bankruptcy court approval. The mills included in the purchase are located in Memphis, Tenn., Oshkosh, Wis., and Augusta, Ga. The Ponderosa mills are deinking pulp producers.

American Tissue is the fourth largest tissue producer in the United States. It specializes in private label brands of tissue products.

Mehdi Gabayzadeh, president and CEO for American Tissue, said the location of the facilities would allow the company’s mills to be close to a supply of raw material. Further, with the acquisition of the Ponderosa mills American Tissue will be a consumer of more than one million tons of recovered fiber a year.