Domtar To Convert TN Mill To Produce Containerboard
Once the Kingsport Mill conversion is complete, which is expected in the first quarter of 2023, Domtar says it will be able to produce and market about 600,000 tons of high-quality recycled linerboard and corrugated medium annually on North America’s premier lightweight contain- erboard machine. That level of capacity will make King- sport the second-largest recycled containerboard mill in North America, according to Domtar. Producing recycled containerboard requires a good supply stream of recycled paper materials like boxes, chipboard, office paper and newsprint. Domtar believes finding that material won’t be a problem. “We can source it from 72 recovered-paper suppliers with 116 locations in a seven-state radius,” the company said in a release. “Thanks to a high-quality paper machine capable of pro- ducing about 4,500 feet per minute, the Kingsport Mill has the potential to become one of the lowest-cost recy- cled containerboard mills in the United States. Its central
For the past two years Fort Mill, South Carolina based Domtar has looked into repurposing key paper machines as the company adjusts its white paper production capaci- ty to match customer demand. This is why the company re- cently announced it will convert its Kingsport, Tennessee paper mill into its first containerboard facility. According to multiple media reports, Domtar views containerboard manufacturing as an exciting new market that directly aligns with its expertise and more than 100- year legacy of turning fiber into useful products. The com- pany believes containerboard is North America’s largest pulp and paper market, and it has good long-term growth prospects. It’s a 40-million-ton market today, and it’s grow- ing by about two percent (about 800,000 tons) every year.
location in the Southeastern United States means it’s also geographically positioned to be the go-to supplier for more than 60 independent box makers across the region, representing nearly four million tons of an- nual containerboard demand.” “Repurposing the Kingsport Mill pro- vides Domtar with an excellent strategic en- try point into a growing market with a very competitive, low-cost asset,” says Domtar President and CEO John Williams. “We view this as a strategic first step toward building a large value-adding business in the con- tainerboard market.” The conversion represents an exciting next step in the Kingsport Mill’s more than 100-year history in the region. “We’re proud of our long history in King- sport and strong partnership with the com- munity,” says Kingsport Mill Manager Marty Barfield. “The mill has an outstanding repu- tation for employing local talent and giving back. We’ve had many generations of fam- ilies working here, and we look forward to continuing that tradition for many years to come.” When Domtar idled the mill in April, the facility employed 304 workers. The convert- ed mill is expected to directly employ ap- proximately 160 workers. A payment-in-lieu- of-taxes (PILOT) agreement calls on Domtar to maintain a minimum of 140 full-time jobs. Domtar is one of the largest manufactur- ers of pulp in the world. Its network of 13 pulp and paper mills and 11 manufacturing and converting facilities gives it approxi- mately 2.7 million tons of papermaking ca- pacity and 1.5 million air-dried metric tons (ADMT) of market pulp capacity annually.
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October 19, 2020
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