Domtar, Weyerhaeuser to Team Up

Domtar, one of the largest producers of uncoated freesheet paper in North America, has signed a definitive agreement to combine with Weyerhaeuser’s fine paper business. The move will more than double Domtar’s current paper production capacity, according to Raymond Royer, Domtar’s President and Chief Executive Officer.

Domtar estimates the new company would generate approximately US$6.5 billion in sales.

The new company, to be called Domtar, will be headquartered in Montreal, Quebec, and will include six uncoated freesheet mills, which will provide two-thirds of Domtar’s more than five million tons of capacity.