Sappi Limited has signed an agreement with Ray-onier Advanced Materials on the acquisition of Rayonier's Matane high-yield hardwood pulp mill in Matane, Quebec. Matane pulp mill has an annual capacity of 270,000tof high-yield hardwood pulp used to make coated and uncoated printing papers, paperboard, linerboard, and tissue. Sappi puts the purchase price for the Matane mill at $175m. The deal is expected to be concluded in the fourth quarter of the year, subject to approval of regulatory authorities. The acquisition of the Matane mill will reportedly help Sappi to increase pulp integration of its North American and European packaging businesses. "The increased pulp integration will lower Sappi's costs of pulp, reduce the volatility of earnings throughout the pulp cycle and provide certainty of supply," Sappi commented.
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