News Paper Pulp
Kruger Specialty Papers set to acquire Domtar’s Kamloops Mill

Kruger Specialty Papers Holding, a Kruger affiliate, has entered into a definitive agreement to purchase all shares of DKP Pulp ULC, a legal entity wholly-owned by Domtar. At the time of closing, Kruger Specialty Papers will acquire Domtar’s Kamloops Mill located in British Columbia.

The Kamloops Mill produces high-quality Northern Bleached Softwood Kraft (NBSK) pulp and unbleached softwood Kraft for customers in North America and Asia.

“We’re very excited about the opportunities that will arise from this acquisition, not only for Kruger but also for the Kamloops Mill, B.C. wood fibre suppliers and the local community,” said Francois D’Amours, executive vice-president and chief operating officer for Kruger, Kruger Specialty Papers’ parent company. “There is a natural fit between Kruger and the Kamloops Mill, which has an impressive track record in terms of performance, sustainability, health and safety and employee engagement. Kruger has always maintained excellent relationships with its employees, customers, suppliers and communities and will make every effort to ensure a smooth and efficient transition, and to continue and strengthen these relationships.”

Kruger expects the transaction to close in the second quarter of 2022, subject to customary conditions, including the approval of the Commissioner of Competition.

The Paper Excellence Group acquired Domtar Corporation in November 2021. It had agreed with the Commissioner to sell Domtar’s pulp mill in Kamloops, British Columbia.

The Kamloops Mill acquisition will enable Kruger to secure the supply of high-quality pulp for some of its Quebec paper mills. The company is investing about $1 billion in Sherbrooke, Quebec, for the construction of two tissue plants.

Kruger noted in a statement that this acquisition will also strengthen its presence in British Columbia as a major employer and provider of essential products. With the Kruger Products tissue plant in New Westminster and Kruger Energy’s Zeballos Lake Hydro Plant, the company will have nearly 700 employees in B.C.