NewPage to Purchase Domtar Product Lines
Miamisburg, Ohio, USA, 16 March 2010 – NewPage Corporation (NewPage) today announced that it has reached an agreement with Domtar Corporation to purchase Domtar's coated groundwood paper product lines and business. The purchase follows Domtar's decision to exit this business and close its Columbus, Mississippi, paper mill.
The purchase will include the coated groundwood paper business; the Choctaw, Saturn, and Jupiter brands; and the coated groundwood product inventory remaining after the Columbus mill closes. The transaction is expected to be completed in April.
“With Domtar's decision to permanently close its Columbus mill and exit the coated groundwood product sector, we will be working closely with Domtar to ensure that the immediate needs of their customers are met without any disruption of service,” stated Tom Curley, president and chief executive officer for NewPage. “Going forward, we look forward to the opportunity to transition these customers to NewPage product and service offerings that meet their future business needs. We recognize that customers have a choice in paper suppliers, and we want to earn their business by ensuring they have a seamless transition to NewPage, should they desire to do so.”
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. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications, and direct mail advertising. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, and Wisconsin in the United States, and in Nova Scotia, Canada. 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.