Hong Kongese paper manufacturing company Nine Dragons Paper Limited (ND Paper), a unit of British Virgin Islands-based Best Result Holdings Limited, has acquired a Fairmont recycled pulp mill from Canadian peer Resolute Forest Services through a $62 million asset purchase transaction with plans to expand production at the facility.
The pulp mill joins two others owned by ND Paper in the United States, with the others located in Maine and Wisconsin. The Fairmont mill is the only one to recycle pulp, while the others manufacture paper. Its investment in the Fairmont mill is an important step in carrying out its global fiber sourcing strategy.
The deal is an upstream integration of the company's business model and is expected to generate synergies within its existing raw material sourcing and production processes, benefiting it with a more secure channel for material supply.
The acquisition also allows Nine Dragons to diversify its overall external product offering with the addition of high quality recycled pulps for domestic and export markets. It will maximize the efficiency of the site’s production, as well as expand into other products.