Miamisburg, Ohio, and Niagara, Wisconsin, USA, 11 February 2011 -- /PRNewswire/ -- NewPage Wisconsin System Inc., a wholly-owned subsidiary of NewPage Corporation, and Niagara Development LLC jointly announced today Niagara Development LLC's acquisition of the NewPage Niagara, Wisconsin, mill property and assets.
The NewPage Niagara facility permanently closed in July 2008 due to a significant decrease in demand for coated paper. The paper machines at the Niagara mill produced approximately 250,000 tons of lightweight coated groundwood papers used in magazines and catalogs. In March 2009, NewPage sold the NewPage hydroelectric facility in Niagara, Wisconsin, to Northbrook Wisconsin, LLC.
"Since the closure of the mill in 2008, NewPage has worked with the city of Niagara to locate a viable purchaser for the mill with a positive outcome for the community," said George Bousley, mayor, city of Niagara. "We are pleased that Niagara Development LLC is purchasing the NewPage Niagara property and assets and believe this is the best possible option for the facility, the city of Niagara, and its residents."
Niagara Development LLC is exploring options with the city of Niagara and others for possible uses of the property and assets going forward.
"We see this deal as a great opportunity for the towns of Niagara, Iron Mountain, Kingsford, Quinnesec, and Norway, as well as the surrounding region," said Eric J. Spirtas, president of Niagara Development LLC.
Sanabe & Associates, LLC, acted as financial advisor to NewPage in the transaction.
Headquartered in Miamisburg, Ohio, NewPage Corporation is the largest coated paper manufacturer in North America, based on production capacity, with USD 3.1 billion in net sales for the year ended 31 December 2009. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint, and specialty papers. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, and Wisconsin in the United States, and in Nova Scotia, Canada. Without giving effect to the closure of the Whiting, Wisconsin mill, these mills have a total annual production capacity of approximately 4.4 million tons of paper, including approximately 3.2 million tons of coated paper, approximately 1.0 million tons of uncoated paper, and approximately 200,000 tons of specialty paper. To learn more, visit www.NewPageCorp.com
Niagara Development LLC, through its principals, Yong Liu of The Faith Group Company, a world leader in plastic, metals, and mining commodity trading, and Eric J. Spirtas, of EJ Spirtas Group LLC, a national contracting expert, has acquired a number of former industrial properties with various development plans to maximize both land and site assets. These properties vary in size, scope, and type, thus requiring very specific redevelopment efforts to suit the specific location and respective needs of the community. To learn more, visit www.faith-group.com or www.ejspirtasgroup.com.