Sale discussions underway for 2 Wisconsin mills
The mills are located in Nekoosa and Rothschild in central Wisconsin
MADISON, Wis. -- Further changes in the Wisconsin papermaking industry may be in the wings as Domtar, the owner of two mills that manufacture printing paper in Nekoosa and Rothschild, acknowledged discussions about a possible transaction with Paper Excellence, a Canadian producer of pulp and paper.
Domtar released a statement saying, “it acknowledges that its management has been in discussion with Paper Excellence about such a potential transaction. However, these talks may or may not result in an agreement.”
Domtar reported a $29 million loss for the first quarter of 2021. The company’s stock, which is listed on the New York Stock Exchange, advanced more than 20% when news of the potential transaction became public.
Domtar is one of the world’s largest manufacturers of freesheet paper. It competes
in that area with Paper Excellence, which also makes pulp, an ingredient in papermaking.
Paper Excellence owns eight mills in Canada, Including six in British Columbia, where it is based. It also owns 49% of a facility in Brazil. But it is smaller than Domtar, which has an employee base that is more than three times larger.
