The Kamloops pulp mill has been sold to Montreal-based Kruger for an undisclosed amount of money.
The Competition Bureau of Canada required the mill at 2005 Mission Flats Road to be sold as part of Domtar’s $3-billion merger with Richmond-based Paper Excellence.
The sale was required by the Competition Bureau of Canada in order to ease concerns about the merger’s implications on the purchase of wood fibre in the Thompson-Okanagan.
In a statement, Kruger says the Kamloops mill will enable it to secure the supply of high-quality pulp for some of its paper mills in Quebec.
“We’re very excited about the opportunities that will arise from this acquisition, not only for Kruger but also for the Kamloops Mill, B.C. wood fibre suppliers, and the local community,” François D’Amours, the Executive Vice President and Chief Operating Officer for Kruger said, in a statement.
“There is a natural fit between Kruger and the Kamloops Mill, which has an impressive track record in terms of performance, sustainability, health and safety and employee engagement.”
The sale is expected to close in the second quarter of this year.
The pulp mill is a major employer in Kamloops with about 350 workers. It is also the largest taxpayer in the city, paying about $5 million in property taxes every year.
“Kruger has always maintained excellent relationships with its employees, customers, suppliers and communities and will make every effort to ensure a smooth and efficient transition, and to continue and strengthen these relationships,” D’Amours continued.
The Kamloops pulp mill was opened in 1965. It was sold to Weyerhaeuser in 1971 and again sold to Domtar in 2007.
We are proud to have entered into an agreement for the acquisition of the Kamloops pulp mill in B.C. A new chapter will soon begin for Kruger and Kamloops! https://t.co/cdUF16kAsb pic.twitter.com/Fkp4YnO4OC
— Kruger inc. (@Kruger_Inc) May 12, 2022
NEWS: Paper Excellence Announces Sale of the Domtar Kamloops Mill
Details: https://t.co/pHpLTCJg3m#Domtar #PaperExcellence #Kamloops pic.twitter.com/amr5vnmQ8f
— Domtar (@DomtarEveryday) May 12, 2022
