Resolute to sell West Virginia pulp mill to ND Paper for US$55 million
August 30, 2018 - Resolute Forest Products is selling its Fairmont, West Virginia recycled bleached kraft pulp mill to ND Paper, a subsidiary of Nine Dragons Paper Limited.
The deal is for US$55 million plus certain elements of working capital, payable in cash.
Nine Dragons is mostly involved in the production and sale of a variety of packaging paperboard products, including linerboard, high-performance corrugating medium, coated duplex board, as well as recycled printing and writing paper and specialty paper. In addition to nine paper mills in Asia, Nine Dragons also operates two U.S.-based facilities in Wisconsin and Maine through ND Paper.
ND Paper has agreed to offer employment to Fairmont mill employees, effective upon closing of the transaction, which is expected within the next two months.
"We are proud of the progress we have made together with the mill employees over the years to improve the Fairmont operation," said Yves Laflamme, president and chief executive officer of Resolute. "We are pleased that the local community and broader region of the state will continue to benefit from the economic and social impact of the mill's operation."
"Proceeds from this asset sale will enable us to further increase liquidity, and continue to improve our balance sheet and financial flexibility," added Laflamme. "Over the coming days, we will communicate with our customers to discuss the transition of supply as we seek to optimize our recycled bleached kraft pulp business at our Menominee, Michigan facility."
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