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Domtar selling Dryden pulp mill

Sale is a requirement linked to Paper Excellence's acquisition of Resolute Forest Products
Domtar's pulp mill in Dryden is being sold to First Quality.


Domtar is selling its Dryden pulp mill to First Quality.

Domtar, which is a subsidiary of Paper Excellence Group, and First Quality made the announcement in separate Feb. 28 news releases. Details of the transaction were not disclosed.

The Dryden pulp mill annually produces 327,000 air dried metric tons of northern bleached softwood kraft pulp (NBSK), which is distributed to customers across Northern America who produce fine paper, paper towel, tissue products.

"First Quality saw this as an excellent strategic investment given the knowledgeable leadership team, premium quality NBSK coming from the mill, and the access and availability to high-quality fibre supplies long term,” Jim Dodge, chief financial officer of First Quality, said in a release.

“We look forward to partnering with the existing mill team members, customers, suppliers, and community stakeholders to continue the mill's successful history of local engagement and economic development.”

Headquartered in Great Neck, New York, First Quality is a family-owned group of companies that manufactures, sells and distributes branded and private label absorbent hygiene, paper and packaging products to health-care retail and commercial clients.

In the Domtar release, the company said operations at the pulp mill would run as usual.

“First Quality has made clear to Domtar its commitment to the Dryden mill, its employees, and the surrounding community, and that First Quality fully intends to continue business operations consistent with past practices,” the news release said.

The transaction is expected to close in the third quarter of 2023.

Domtar’s parent company, Paper Excellence, announced on March 2 that it has concluded the purchase of Resolute Forest Products, a deal that was first announced last spring.

The sale of the Dryden mill is a requirement under the consent agreement between Domtar and the Canadian Competition Bureau in connection with its review of Domtar’s acquisition of Resolute.