Domtar Announces Plans to Convert Paper Mill into Recycled-Packaging Facility

Domtar Corporation (NYSE: UFS), the largest integrated manufacturer and marketer of uncoated freesheet paper in North America, has announced that its mill in Kingsport, Tenn. will stop producing printing and writing paper grades. Instead, the mill—which has sat idle since April because of decreased customer demand—will be converted into a facility that produces recycled linerboard and medium.

Notes CEO John Williams: “While we expect the decline to level off as the economy recovers and businesses reopen, we do not believe that paper demand will reach its pre-pandemic levels, and we have determined some time ago that containerboard will maximize the value of the Kingsport assets.”

According to the company, the converted mill will have the second-largest recycled containerboard machine in North America and will require approximately 660,000 tons per year of OCC and mixed paper feedstock, which will be sourced locally. It will produce “lightweight containerboard as well as have the capability to provide industry standard grades, utilizing proprietary fiber technology to develop superior strength characteristics.”

The facility is expected to be operational in the first quarter of 2023.

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