Domtar Inc. is acquiring
four paper mills from Georgia-Pacific Corp. for around $1.65 billion. GP will
use the proceeds from the sale to repay some of its debt.
The mills GP is selling are
located in Ashdown, Ark; Nekoosa and Port Edwards, Wis.; and Woodland, Maine.
The sale was originally announced in April. The sale is expected to be
completed by the third quarter of the year.
GP will continue to own and
operate white paper mills in Camas, Wash.; Crossett, Ark.; Port Hudson, La.;
and Wauna, Ore.
When the acquisition is
completed Domtar will own and operate two mills ranked among the lowest cost
producers in North America (Ashdown, Ark., and Windsor, Quebec). These two
mills will be responsible for 50% of Domtar’s total paper production.
The Ashdown mill, with an
annual capacity of approximately 825,000 tons, predominantly manufactures copy
and offset papers. The Nekoosa and Port Edwards mills, with annual capacities
of approximately 220,000 and 180,000 tons, respectively, produce various
premium, specialty and business paper grades. The Woodland mill has an annual
capacity of approximately 125,000 tons of premium and business grades. The four
mills also have a net market pulp position of approximately 375,000 metric
tons.

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