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Prince Albert facility to be converted to produce dissolving pulp
Mar '11
Domtar Corporation announced that it has entered into an agreement with Paper Excellence Canada Holdings Corporation ("Paper Excellence") for the sale of its Prince Albert, Saskatchewan assets.

Paper Excellence will convert the former mill to the production of dissolving pulp, a product intended for the viscose textile market.

The transaction is subject to customary closing conditions as well as the following conditions:
1) that the buyer and the Government of Saskatchewan reach an agreement concerning fiber allocation, the purchase of excess power, and the division of responsibilities between the Government and the buyer for past environmental liabilities, and

2) that a new collective agreement be reached between the buyer and local labor union. The transaction is expected to close in the second quarter of 2011.

The Prince Albert mill was permanently closed in the second quarter of 2006 and has not been operated since. Domtar acquired the assets in 2007 as part of a transaction with Weyerhaeuser Company. Domtar completed the dismantling of the mill's paper machine and converting equipment in 2008.

Domtar Corporation

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