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Rubber and Wood August 11, 2020 09:30:47 PM

Domtar Corporation Makes Entry Into Linerboard Market

Paul Ploumis
ScrapMonster Author
The company foresees an investment ranging between $300 million and $350 million for the conversion project, which it expects to be completed before the end of the initial quarter in 2023.

Domtar Corporation Makes Entry Into Linerboard Market

SEATTLE (Scrap Monster):  Domtar Corporation announced its plans to mark its entry into the linerboard market. Accordingly, the company has decided to convert its uncoated freesheet printing and writing paper machine in Kingsport, Tennessee mill into recycled-content linerboard output.

The company foresees an investment ranging between $300 million and $350 million for the conversion project, which it expects to be completed before the end of the initial quarter in 2023. Upon full operations, the mill will produce approximately 600,000 tons of high-quality recycled linerboard and medium per annum. The conversion project will provide Domtar with a strategic footprint in the growing adjacent market. The mill is expected to create 160 direct jobs.

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John D. Williams, President and Chief Executive Officer noted that repurposing the mill provides the company with the best strategic entry point into a growing market.

In addition, the company has also announced that the uncoated freesheet manufacturing operations at Port Huron, Michigan mill and a paper machine at the Ashdown, Arkansas mill will stop permanently. Also, the company will close a converting center in Ridgefields, Tennessee. The above will reduce the company’s combined uncoated freesheet paper capacity by nearly 720,000 tons per year.

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