Aditya Birla Group to buy Terrace Bay Pulp
The Aditya Birla Group of India is the successful bidder for Terrace Bay Pulp.
Through their Canadian subsidiary, The AV Group, Aditya Birla Group currently operates the Nackawic (“AV Nackawic“) and Atholville (“AV Cell“) mills in New Brunswick, producing dissolving pulp to export to rayon producers in Asia.
The company plans to convert the Terrace Bay Pulp mill to produce rayon grade pulp for export.
“The acquisition of Terrace Bay Mill and its subsequent conversion into a dissolving grade pulp mill is a major strategic move for our business where we are global leaders. The Terrace Bay Mill upon conversion will provide superior quality pulp for our viscose staple fibre business. The provincial government and communities in the Northwest have been very supportive and welcoming. We have about a 6,000 strong workforce operating in Canada and we look forward to furthering this productive and meaningful relationship.”
– Kumar Mangalam Birla, Chairman of the Aditya Birla Group
The purchase price has not been confirmed. Indian news sources have reported it to be both $300 million US and $110 million US.
The company will invest more than $250 million over the next two years, converting the facility to produce rayon fibre. In the meantime, the mill will restart and produce and sell paper grade pulp, bringing some of the mill’s 275 employees will be back to work by October.
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