Hong Kong-based Nine Dragons has entered into an agreement to purchase Resolute Forest Products’ pulp mill in Fairmont, USA.
The mill produces recycled bleached kraft pulp that is used in packaging and tissue products and has a production capacity of 220,000tpy.
Resolute entered into the agreement with ND Paper, a subsidiary of Nine Dragons.
Nine Dragons is one of the largest producers of packaging paperboard in the world.
Its move into the US follows in the wake of China’s National Sword policy, where the flow of scrap paper to China has diminished.
In addition to nine paper mills operating in Asia, the company also operates two US-based facilities in Wisconsin and Maine.
ND Paper has agreed to offer employment to Fairmont mill staff, effective upon closing of the transaction, which is expected within the next two months.
Resolute Forest Products produces a range of products including market pulp, tissue, wood products, newsprint and specialty papers.
Yves Laflamme, president and chief executive officer of Resolute, said: “Proceeds from this asset sale will enable us to further increase liquidity, and continue to improve our balance sheet and financial flexibility.
“Over the coming days, we will communicate with our customers to discuss the transition of supply as we seek to optimise our recycled bleached kraft pulp business at our Menominee, Michigan facility.”