NewPage to Purchase Domtar Coated Groundwood Product Lines
MIAMISBURG, OH/MONTREAL—March 16, 2010—NewPage Corp. today announced that it has reached an agreement with Domtar Corp. to purchase Domtar's coated groundwood paper product lines and book of business. The purchase follows Domtar's decision to exit this business and close its Columbus, MS paper mill.
The purchase will include the coated groundwood paper book of business, the Choctaw, Saturn and Jupiter brands, and the coated groundwood product inventory remaining after the Columbus mill closes. The transaction is expected to be completed in April.
Domtar reported that the coated groundwood paper mill has an annual production capacity of 238,000 tons of coated groundwood and 70,000 metric tons of thermo-mechanical pulp. The mill currently has 219 employees. Operations are expected to cease by the end of April 2010.
"Market conditions for coated groundwood paper are challenging and despite the best efforts of our employees - and these efforts have been commendable - the mill continues to suffer from a weak cost position," said John D. Williams, President and Chief Executive Officer of Domtar. "With this permanent closure, Domtar is exiting the coated groundwood paper business."
“With Domtar's decision to permanently close its Columbus mill and exit the coated groundwood product sector, we will be working closely with Domtar to ensure that the immediate needs of their customers are met without any disruption of service,” stated Tom Curley, president and chief executive officer for NewPage. “Going forward, we look forward to the opportunity to transition these customers to NewPage product and service offerings that meet their future business needs. We recognize that customers have a choice in paper suppliers, and we want to earn their business by ensuring they have a seamless transition to NewPage, should they desire to do so.”
About NewPage Corp.
NewPage Corp. is the largest coated paper manufacturer in North America , based on production capacity, with $3.1 billion in net sales for the year ended December 31, 2009 . The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising.