For now, Domtar is staying put

DRYDEN – The Paper Excellence Group purchased Domtar last year for approximately $3 billion and announced on July 6 that it had reached an agreement to purchase Resolute for approximately $3.5 billion. Resolute operates facilities in northwestern Ontario, including Thunder Bay, Atikokan, and Ignace. 

“What that means for Domtar in Ontario is that Domtar is now making plans to offer for sale the Dryden pulp mill and the Espanola pulp and paper mill in anticipation of some regulatory requirements attached to that larger transaction,” said Bonny Skene, Regional Public Affairs Manager.

Skene explains that the sale of Domtar is preventive, citing “regulatory requirements” as the reason why Domtar is putting up the pulp mill for sale.  

“It’s newly announced,” said Skene. “Paper Excellence Group announced their intention to acquire Resolute. We expend that transaction to close sometime in the first half of 2023. Any sale of the Dryden and Espanola facilities will occur once that transaction is closed. There is a good eight months to a year of runway in terms of those changes taking place. So, in the meantime, it’s base business. It’s focusing on operating safely, reliably, doing our best to meet our customer’s needs, and keeping things running well.”

For the time being, at least until the acquisition is approved, it’s business as usual for Domtar and those employees who work inside the mill.

"With this transaction, Resolute will accelerate its growth as it gains access to more tools, capital and opportunities to pursue our ambitions with the combined resources of the Paper Excellence Group," stated Remi G. Lalonde, Resolute's president and chief executive officer.  "This is good for employees and the communities where Resolute operates because we will continue to grow in a manner consistent with our core values of accountability, caring and trust that we hold dear. Together, we will form a stronger and more resilient, diversified forest products company, positioned to compete on a truly global scale, with a shared commitment to being a trusted business partner, dedicated to sustainability and to caring for its people and communities."

Resolute will continue to operate under its own name. The management team will remain the same and operate out of their headquarters.