Home / Knowledge / News / Textiles / Aditya Birla Group to buy Canadian Pulp Mill
Aditya Birla Group to buy Canadian Pulp Mill
07
Jul '12
The Aditya Birla Group announced that it has signed an agreement in-principle to purchase the assets of the Terrace Bay Pulp Mill in North Western Ontario.  Says Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, “The acquisition of the Terrace Bay Mill and its subsequent conversion into a dissolving grade pulp mill is a major strategic move. 

In the VSF business, we enjoy global leadership.  To sustain ongoing growth, we have an integrated business model, spanning the entire value chain from plantation to pulp to fibre.  The Terrace Bay Mill, upon conversion, will be geared to provide superior quality pulp for our VSF plants worldwide”.

The Terrace Bay Mill was placed under CCAA (Companies Creditors Arrangement Act) in January, 2012.  The Aditya Birla Group is to make this acquisition through a Special Purpose Vehicle (SPV), AV Terrace Bay Inc. (Canada).  Grasim Industries Ltd., proposes to hold a 40% stake in AV Terrace Bay Inc. and the remaining 60% is proposed to be held by Thai Rayon Public Co. Ltd., Thailand.  Over a period of the next 3 years, Grasim would be contributing $ 44 million, out of the total equity contribution of $ 110 million.

The Group will be investing more than $ 250 million in a phased manner to convert the mill to produce Dissolving grade pulp with a capacity of 2,80,000 tpa.  Until the conversion, which is likely to happen in FY 16, the mill will produce and sell Paper grade pulp.  The Paper Grade Pulp mill should restart by October 2012.  The Terrace Bay Mill is considered an anchor mill due to its location and its significant consumption of residual chips produced by the regional sawmills.

The transaction is subject to Court approvals in Canada and other Regulatory approvals in Canada, Thailand and India.  It is expected to close by July 31, 2012.

The Aditya Birla Group has a significant presence in Canada.  Its major companies – AV Nackawic, AV Cell in the pulp & fibre business, Aditya Birla Novelis in the metals business, Aditya Birla Minacs in the ITES business and Columbian Chemicals in Carbon Black business have highly successful operations in Canada.  The Aditya Birla Group has a 6000 strong workforce operating in the country. The Group enjoys a strong relationship with the Government and with the Community at large.

Aditya Birla Group


Must ReadView All

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Courtesy: Heimtextil theme-park

Textiles | On 17th Dec 2017

Heimtextil’s Theme Park to offer multi-sensory impact

Titled “The future is urban”, the Theme Park at Heimtextil during...

Courtesy: Honeywell

Textiles | On 17th Dec 2017

Honeywell acquires 25 pc ownership interest in Flux

Honeywell has acquired 25 per cent ownership interest in Flux...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search