(Montreal) Resolute Forest Products, a subsidiary of Domtar which is part of Groupe Papier Excellence, has signed an agreement to sell its pulp and paper mill in Thunder Bay, Ontario, to a subsidiary of the American company Atlas Holdings.
Financial details of the deal were not immediately available.
The mill sale is a requirement under an agreement between Domtar and the Competition Bureau for the company’s acquisition of Resolute, which will continue to operate its sawmills and forestry operations in the north -Western Ontario.
Resolute clarified that once the sale of the plant is complete, it expects to enter into a long-term supply agreement that will allow it to continue to supply chips and biomass to the Thunder Bay facility. .
The agreement is expected to close in the second half of the year and is subject to certain closing conditions, including required regulatory approvals.
Papier Excellence completed its acquisition of Resolute through its subsidiary Domtar on March 1.
