Asian companies buy more Canadian pulp mills

China’s Fulida Group Holdings has bought Neucel Specialty Cellulose from private equity investors Wellspring Capital Management. Neucel is situated in Port Alice, BC.

According to reports, Fulida is taking over the ownership along with its related company Zhejiang Fulida Ltd. which has held a minority share in the mill since 2010.

The mill produces dissolving sulfite pulp (DSP) used to manufacture rayon, a commodity in great demand throughout Asia as a substitute for cotton. DSP currently sells for over twice the price of NBSK and spot prices have been at the $US2,600 level recently.

Meanwhile, Domtar Corp. said it was selling its shutdown Prince Albert, SK, property to Paper Excellence Canada Holdings Corp., The Netherlands-based unit of Indonesia’s Sinar Mas.Paper Excellence is reported to be planning to spend $C200-million to convert the old kraft mill to DSP. The paper machine has already gone. The company owns a mill in Saskatchewan and two in BC. www.neucell.com, www.domtar.com. PI

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