Fortress completes acquisition of Lebel-sur-Quévillon mill (Canada)

Fortress Paper has completed the acquisition of the buildings, equipment, and ancillary property related to the non-operating pulp mill located in Lebel-sur-Quévillon, Que. The mill was purchased from a numbered company owned by Domtar Inc. and the Quebec ministry of economic development.

Collective agreements with the unionized employees of the LSQ mill have been ratified.

Through a subsidiary, Fortress Global Cellulose Ltd., Fortress Paper plans to convert the LSQ mill into a dissolving pulp operation. The acquisition also includes a 30-MW co-generation facility, which Fortress intends to restart.

Fortress Global will invest about $222 million to convert the former NBSK mill to dissolving pulp production. The company has secured a $132-million project financing loan with Investissement Quebec.

While the original announcement of this project in January 2012 expected annual production of 236,000 ADMT, the company has completed additional engineering and technical reviews and has revised it capital expenditures program to bring annual production capacity to 250,000 ADMT.

With the anticipated production from the LSQ mill and Fortress' Thurso, Que., dissolving pulp operation, the company will have annual capacity of 450,000 ADMT.