(NYSE: UFS) (TSX: UFS)
MONTREAL, Jan. 31, 2012 /CNW Telbec/ - Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced that it has signed a definitive agreement
with Fortress Global Cellulose Ltd ("Fortress"), and with a subsidiary
of the Government of Québec, for the sale of its Lebel-sur-Quévillon
assets. The transaction is subject to customary closing conditions and
is expected to close in the second quarter of 2012.
"The sale of the Lebel-sur-Quévillon assets to a strategic buyer is a
positive outcome for the community and we wish them success for the
future," said John D. Williams, President and Chief Executive Officer of Domtar.
"The buyer will convert the mill to the manufacture of dissolving pulp
and we will support them through this transition by marketing and
selling their initial production of paper grade softwood pulp which is
contractually limited to a maximum of 100,000 metric tons."
As per the agreement, all pulp and sawmilling assets including the
buildings and equipment will be sold to Fortress for the nominal sum of
$1.00 and all lands related to the facilities will be sold to a
subsidiary of the Government of Québec for the nominal sum of $1.00.
The manufacturing operations at the pulp mill ceased in November 2005
due to unfavorable economic conditions while sawmilling operations at
the facility ceased in 2006. At closure, the pulp mill and sawmill
directly employed 425 and 140 employees respectively.
Domtar Corporation (NYSE: UFS) (TSX: UFS) is the largest integrated
manufacturer and marketer of uncoated freesheet paper in North America
and the second largest in the world based on production capacity, and
is also a manufacturer of papergrade, fluff and specialty pulp.
The Company designs, manufactures, markets and distributes a wide range
of business, commercial printing and publishing as well as converting
and specialty papers including recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice® Office Paper, part of a family of environmentally and socially
responsible papers. Domtar also produces a complete line of
incontinence care products and distributes washcloths marketed
primarily under the Attends® brand name. Domtar owns and operates ArivaTM, an extensive network of strategically located paper distribution
facilities. The Company employs approximately 8,800 people. To learn
more, visit www.domtar.com.
SOURCE DOMTAR CORPORATION
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