Sappi acquires Matane Mill in Quebec from Rayonier for $175M
Has a 270,000-megatonnes per annum capacity of high-yield hardwood pulp.
JOHANNESBURG, South Africa — Sappi Ltd., a global producer of dissolving wood pulp, speciality and packaging papers, graphic paper and biomaterials, is acquiring a Quebec pulp mill from Rayonier Advanced Materials for US$175 million.
The Matane Mill located on the south shore of the St. Lawrence River at the mouth of the Matane River, has a 270,000 megatonnes per annum capacity of high-yield hardwood pulp. The mill has 129 employees.
The South African company says the Canadian acquisition increases its fast-growing packaging businesses in both North America and Europ, reduces its cost of pulp, establishes certainty of supply for for high yield pulp to support recent investments and will increase supply over time to Sappi’s mills in North America and Europe.
Rayonier Advanced Materials, based in Jacksonville, Fla., is a producer of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in cell phones, computer screens, filters and pharmaceuticals. The company also manufactures products for lumber, paper and packaging markets. It has manufacturing operations in the US, Canada and France.
Sappi, based in Johannesburg, South Africa has over 12,000 employees; manufacturing operations on three continents, in seven countries.