China’s Nine Dragons Paper plans to buy Rumford, Biron mills from Catalyst Paper

Hong Kong-based Nine Dragons Paper (Holdings) Ltd. said in May that its wholly-owned subsidiary in the USA, ND Paper LLC, has agreed with Vancouver, BC-based Catalyst Paper Holdings Inc. to acquire the equity interest in Catalyst Paper Operations Inc. which owns two fully-integrated pulp and paper mills, one in Rumford, ME and the other in Biron, WI. The price is $US175 million (about $HK1.37 billion), to be satisfied by the Group’s cash in hand and bank borrowing. Closing is expected by the end of the second quarter.

Both mills make a variety of pulp, paper and paper-based packaging materials. Rumford has three paper lines with a combined capacity of about 550,000 tonnes a year (kt/y) of coated one-side, coated freesheet and coated groundwood grades. With two kraft pulping lines and a dryer, the pulping capacity is about 520 kt/y for kraft pulp, both hardwood and softwood grades; about 400 kt are for internal consumption and the remaining 120 kt are for market.

Biron has two paper lines with capacity of about 340 kt/y of coated groundwood grades.

Nine Dragons Paper (Holdings) Ltd. is the largest packaging paperboard producer in China and Asia and one of the largest producers in the world, in terms of design capacity. It primarily manufactures and sells linerboard, high-performance corrugating medium and coated duplex board products. It also produces and sells recycled printing and writing paper and specialty paper.

www.ndpaper.com www.catalystpaper.com

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