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Domtar Wraps Up Acquisition of Appvion's POS Paper Business

Domtar Corporation UFS has completed the acquisition of the Point of Sale (POS) paper business from Appvion Operations, Inc. Notably, the buyout includes the coater and related equipment located exclusively in the West Carrollton, OH facility, and a license for all corresponding intellectual property.

On Feb 19, Domtar signed a deal with Appvion to purchase the POS paper business. The acquisition will support Domtar to become a large-scale, integrated producer of POS paper. In fact, through this acquisition, the company will be able to get access and insight about the global specialty papers market.

Domtar's world-class paper-making capabilities, together with the West Carrollton coater's substantial scale, will create a globally-competitive POS paper business, while providing new alternatives for the company’s growth.The West Carrollton asset provides an opportunity for Appvion’s POS business employees to become part of an integrated pulp and paper producer, and leverage the coating asset to its maximum potential.

Recently, Domtar announced its plans to temporarily suspend operations of the Kingsport, TN mill and the A62 paper machine at the Ashdown, AR mill for three months in response to the unfavorable business conditions due to the coronavirus crisis. The operation suspension will reduce the company’s uncoated freesheet paper production capacity by 144,000 short tons during the three-month period. Moreover, the pandemic has strained demand for communication paper as offices, businesses and schools are closing down due to the governments’ restrictions to curb the spread of the virus.

Meanwhile, the company’s other facilities are fully operational and continue to ship products to all states and provinces without any supply disruptions. The company is committed to operate its business efficiently in order to fulfill customers’ demand, while ensuring health and safety of its employees.

The pulp and paper industry has been designated as an essential service by both the U.S. and Canadian governments. Domtar’s pulp and paper mills support critical infrastructure, supply chains, manufacturers and distributors in delivering crucial materials, which are significant components in the production of vital items in the healthcare, food packaging and food processing industry.

Domtar, along with Clearwater Paper Corporation CLW, Verso Corporation VRS and Sappi Ltd. SPPJY, belongs to the Paper and Related Products industry.

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Clearwater Paper Corporation (CLW): Free Stock Analysis Report
 
Verso Corporation (VRS): Free Stock Analysis Report
 
Domtar Corporation (UFS): Free Stock Analysis Report
 
Sappi Ltd. (SPPJY): Free Stock Analysis Report
 
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