FORT MILL, S.C.--(BUSINESS WIRE)--Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced it has signed an agreement with Voith to provide equipment and technical services to convert the paper machine at its Kingsport, Tennessee, mill to produce recycled containerboard including high-performance lightweight packaging grades, as well as industry standard grades.
In addition to being a full-line supplier to the paper industry, Voith is also recognized as a leader in the containerboard machinery business. The company will play an important part in Domtar's entry into the containerboard market by helping build one of the most modern recycled containerboard machines in the world, able to set industry benchmarks in recycled containerboard strength and convertibility.
In August, Domtar also signed an agreement with Voith to provide a complete recycled stock preparation system for the Kingsport Mill including water, sludge and reject handling systems which will maximize both efficiency and quality.
The mill's conversion to is expected to be complete in 2022. Once complete, the Kingsport Mill will become North America's premier lightweight containerboard facility -- able to produce and market about 600,000 tons of high-quality recycled linerboard and corrugated medium annually. That level of capacity will make Kingsport the second-largest recycled containerboard mill in North America.
"We are pleased to continue our partnership with Voith as we repurpose our Kingsport Mill to enter the containerboard market," Domtar President & CEO John Williams said. "Voith is an ideal partner for this project, able to provide the entire scope of supply from raw material receipt to finished product."
"The Voith team is excited to work with Domtar on this state-of-the-art conversion. We worked closely with their teams to design the needed technical scope to produce the demanding grades they are planning for the machine and the market they are targeting," stated Dr. Michael Trefz, President Voith Paper Division Projects. "Conversion projects like this offer unique challenges and we're proud that Domtar recognized our capabilities, experience and expertise in supporting this type of project."
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 9,200 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.2 billion, and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.
The Voith Group is a global technology company. With its broad portfolio of systems, products, services and digital applications, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive. Founded in 1867, the company today has more than 19,000 employees, sales of € 4.3 billion and locations in over 60 countries worldwide and is thus one of the larger family-owned companies in Europe. The Group Division Voith Paper is part of the Voith Group. As the full-line supplier to the paper industry, it provides the largest range of technologies, services, components and products on the market and offers paper manufacturers solutions from one single source. The company’s continuous stream of innovations takes papermaking to the next level and facilitates resource-conserving production. With its Servolution concept, Voith offers its customers tailored service solutions for all sections of the production process. Voith Papermaking 4.0 ensures that equipment is optimally connected, while the secure use of generated data enables paper manufacturers to improve plant availability and efficiency.
Statements in this release about our plans, expectations and future performance, including the statements by Mr. Williams are “forward-looking statements.” Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under “Risk Factors” in our Form 10-K for 2019 as filed with the SEC and as updated by subsequently filed Form 10-Qs. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.