Hong Kong-based Nine Dragons has entered into an agreement to purchase a Resolute Forest Products Inc. pulp mill in Fairmont, W.Va.
The Fairmont mill produces recycled content pulp used in packaging and tissue products and has an annual production capacity of nearly 220,000 metric tons.
According to a press release issued by Oakbrook Terrace, Ill.-based ND Paper LLC, Resolute will receive $55 million "plus certain elements of working capital, payable in cash" for the mill.
Recycling Today has more details:
A United States-based subsidiary of Hong Kong-based Nine Dragons Paper (Holdings) Ltd. has entered into an agreement with Montreal-based Resolute Forest Products Inc. to purchase Resolute’s recycled-content bleached kraft pulp mill in Fairmont, West Virginia.
According to a press release issued by Oakbrook Terrace, Illinois-based ND Paper LLC, Resolute will receive $55 million “plus certain elements of working capital, payable in cash” for the mill. Nine Dragons says it plans to use “existing cash on its balance sheet” to fund the transaction.
"We are thrilled to add the Fairmont mill to Nine Dragons' global portfolio," says Ken Liu, CEO of ND Paper. "Our acquisition of the Fairmont mill enables us to further our U.S. and global growth, and sustains the momentum commenced by our recent acquisitions of the Biron, Wisconsin and Rumford, Maine, pulp and paper mills acquired from Catalyst Paper in [May] 2018. Not only is this transaction consistent with our long-term strategy of environmentally-sustainable papermaking, but also it further supports Nine Dragons’ company-wide fiber sourcing requirements and global growth initiatives."