Canadian firm Catalyst Paper recently signed an asset purchase agreement with NewPage Corporation, NewPage Wisconsin System and Rumford Paper Company to acquire their pulp and paper mills in Wisconsin and Maine in the US.
The cost of acquisition is expected to reach nearly EUR 60 million. “Our acquisition of these US pulp and paper mills, once complete, will support our efforts to improve our balance sheet and enhance the Company’s long-term competitiveness,” said, Joe Nemeth, President and CEO, Catalyst.
The Biron paper mill in Wisconsin has annual production capacity of 355,000 tonnes and produces lightweight coated and ultra-lightweight coated paper. The Rumford pulp and paper mill in Maine produces coated specialty, coated freesheet, coated ground wood paper and kraft market pulp. The mill has annual production capacity of 640,000 tonnes.
The acquisition will enable Catalyst Paper to increase its annual production capacity by approximately 995,000 tonnes. Nemeth added, “With this Transaction, Catalyst will be better able to serve new and existing customers through operational synergies and a more diversified and higher value suite of products.”
In addition to production capacity, the acquisition is also expected to provide Catalyst Paper with access to new markets and business opportunities.
