Canadian Manufacturing

Domtar sells Saskatchewan mill to Paper Excellence

Paper Excellence will spend $200M to convert Prince Albert mill



MONTREAL—Domtar Corporation is selling its Prince Albert, Saskatchewan mill to Paper Excellence Canada Holdings Corporation (Paper Excellence).

Paper Excellence will spend $200 million to convert the idled kraft pulp mill for the production of dissolving pulp—a product used in the viscose textile market.

The new process is expected to employ 200 people.

“Those jobs will range from managerial positions, to technicians and operations,” said Ed Roste, vice-president of operations for Paper Excellence.

The majority of positions will go to employees who worked at the mill before it closed down in 2006.

Roste also expects the converted mill will create an additional 700 jobs in the forestry sector.

The Saskatchewan government is allocating $500,000 annually for the first two years, to help train new mill operators.

The transaction is expected to close in the second quarter of 2011 with upgrades to the mill completed within the next two years.

This will be Paper Excellence’s third Canadian mill acquisition. The Netherland-based company also owns the Mackenzie Pulp Mill in B.C. and the Meadow Lake Mill, in Saskatchewan.

The financial terms of the deal have not been disclosed, but Domtar spokesperson Pascal Bossé said the company had been in discussions with a number of interested parties.

“The Paper Excellence proposal was the more comprehensive of all,” he said.

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