NorskeCanada completed its acquisition of the Newtech Recycling facility from privately held Belkorp Corp. The deinking facility is located in Coquitlam, B.C. The purchase price was $58 million, plus working capital. Under a long-term arrangement, NorskeCanada will lease, from Belkorp, the land and buildings housing the operation.
The acquisition is expected to allow Canadian-based NorskeCanada to save $16 million a year by bringing this new facility within the company’s operations.
"This move is good for our bottom line, good for our customers, and good for the environment," noted Russell J. Horner, president and CEO. "Adding a modern plant and a team of people with a culture of excellence to our business makes good, strategic sense. We worked together in the manufacturing supply chain for years and closer integration of this facility with our mills gives us flexibility to readily meet demand for paper products made from de-inked pulp as environmental interests grow."
With the purchase, NorskeCanada now owns the largest paper recycling operation in Western Canada. The plant opened in 1991 and converts recovered publication papers into a recycled pulp. The plant buys old newspapers and magazines from points east to Winnipeg and throughout the Midwest U.S. with more than 60 per cent of this supply originating in British Columbia and Alberta.Latest from Recycling Today
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