Kruger Specialty Papers Holding has entered into a definitive agreement to acquire DKP Pulp, a legal entity wholly-owned by Domtar.
Once closed, the deal means that the Kruger affiliate business will own and operate the British Columbia-based Kamloops mill, and means the tissue manufacturer will increase its Northern Bleached Softwood Kraft (NBSK) pulp production.
The business already produces NBSK in its Wayagamack plant in Three Rivers, Québec.
The Kamloops plant produces high quality NBSK pulp and unbleached softwood kraft for customers in North America and Asia.
Asked if Kruger has plans to focus more on pulp manufacturing, a spokesperson for the company told TWM: “At this point, we cannot comment further.
“There are regulatory steps that we need to go through before the closing of the transaction, and once those are finalised, we will meet with our new employees in a few weeks’ time before publicly discussing anything further.”
Closing of the transaction is expected to occur in the second quarter of 2022 and is subject to customary conditions, including the approval of the Commissioner of Competition.
The Paper Excellence Group, in the context of its acquisition of Domtar Corporation in November 2021, has agreed with the Commissioner to sell the pulp mill.
Kruger said this acquisition will enable it to “secure the supply of high-quality pulp for some of its Québec paper mills”; the company is doubling the capacity of its Sherbrooke, Québec, expansion project by constructing a double width Light Dry Crepe (LDC) tissue machine with a capacity of at least 60,000tpy, instead of the previously announced 30,000tpy LDC tissue machine.
François D’Amours, Executive Vice President and Chief Operating Officer for Kruger Inc., added: “We’re very excited about the opportunities that will arise from this acquisition, not only for Kruger but also for the Kamloops Mill, wood fibre suppliers and the local community.
“There is a natural fit between Kruger and the Kamloops mill.”