Tembec Inc. has reached an agreement to sell its NBSK pulp mill located in Skookumchuck, B.C. to Paper Excellence Canada Holdings Corp. for a purchase price of $89 million.
Tembec Inc. has reached an agreement to sell its NBSK pulp mill located in Skookumchuck, B.C. to Paper Excellence Canada Holdings Corp. for a purchase price of $89 million.
Skookumchuck was Tembec’s only NBSK asset. President and CEO James Lopez says the deal “supports the continuing transformation of the company and the reshaping of its business portfolio.” Tembec manufactures lumber, pulp, paper and specialty cellulose from operations in Canada and France.
The purchase adds to Paper Excellence’s extensive NBSK operations. In Canada, the privately-held corporation owns Mackenzie Pulp, Howe Sound Pulp & Paper, Meadow Lake Mechanical Pulp, Prince Albert Pulp (non-operating), and Northern Pulp Nova Scotia. With the addition of the Skookumchuck mill (255,000 tonnes of capacity), Paper Excellence’s Canadian capacity for NBSK pulp is 1.2 million tonnes.
The transaction is expected to close in the second quarter of 2013.
Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd. The mill started up in 1968, and currently employs 290. Its pulp is shipped to North American and Asian customers primarily for tissue applications.
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