Domtar To Invest $160 Mln In Fluff Pulp Line Conversion - Quick Facts

(RTTNews) - Domtar Corp. (UFS) is converting a paper machine to produce fluff pulp for use in items such as diapers and sanitary napkins.

Domtar, a paper and pulp producer, said the conversion will enable fluff pulp production of 516,000 metric tons; while freesheet production will decline by 364,000 short tons annually.

The company will invest $160 million to convert the paper machine at its Ashdown, Arkansas mill, with the conversion due to end in the third quarter of 2016. Domtar said it will also invest in a pulp bale line for making papaergrade softwood pulp.

Domtar will take an estimated $117 million charge due to the conversion.

Further, the company said its decision to convert the A64 line of Ashdown Mill may result in a write-down of the carrying amount, around $813 million, of the mill assets during the fourth quarter.