Chinese company Nine Dragons buys Catalyst Paper mills in US for US$175 million
There are no plans for lay-offs at the mills, which employ about 610 workers in Rumford, Maine, and 380 workers in Biron, Wisconsin
Canadian company Catalyst Paper Corp. is selling its US operations, including a pair of paper mills in Maine and Wisconsin, to a Chinese company that has no immediate plans for changes, officials said Friday.
A subsidiary of Nine Dragons Paper is paying US$175 million for the mills and an operations centre in Dayton, Ohio. There are no plans for lay-offs at the mills, which employ about 610 workers in Rumford, Maine, and 380 workers in Biron, Wisconsin, a spokeswoman said.
Fosun to expand in North American by investing in tourism
Ned Dwyer, Catalyst president and CEO, said the sale of the company’s US assets allows it to pay down debt and focus on operations in British Columbia.
The deal is expected to close in the second quarter.
Nine Dragons’ major focus is on environmentally friendly recycled paper, but it also operates conventional pulp mills like those it’s buying in Maine and Wisconsin.
“Our focus right now is on continuing current operations and conducting business as usual on a day-to-day basis,” spokeswoman Kelly Karr said.
Trade war pushes Chinese investors away from luxury US real estate
Down the road, Nine Dragons said it plans to invest in high-growth packaging paper and pulp products to keep both of the mills on a competitive footing.
“We look forward to working with the teams and communities in Maine and Wisconsin as we embark on this next phase of expansion together,” Chairwoman Yan Cheung said.
