Domtar sells assets of its former Port Edwards, Wisconsin, paper mill, excluding adjacent hydroelectric facilities, to Ohio-based DMI Acquisitions; new owner plans to find new purpose for the site

Kendall Sinclair

Kendall Sinclair

MILWAUKEE , March 27, 2013 () –

Domtar Corp., a major North American papermaker that operates two paper mills in Wisconsin, on Wednesday announced it had found a buyer for the assets of a third Wisconsin mill that it had closed in 2008.

Ohio-based DMI Acquisitions LLC, which specializes in metals recycling, has agreed to buy the assets on the 192-acre site of the former Port Edwards mill.

Like many paper mills in Wisconsin, the nation's leading papermaking state, Port Edwards was build over a century ago. Its closure eliminated 500 jobs. The state has seen its publishing-grade paper mills close at the rate of more than one a year since 2006, following the introduction of wifi and e-readers.

DMI said it will attempt to find a new purpose for the site. Like all Domtar's mills, Port Edwards was on the Wisconsin River.

"DMI believes that the 192-acre Port Edwards mill site, with its extensive rail facilities, is uniquely positioned for new warehouse and light manufacturing opportunities, particularly in the energy, agricultural and wood products markets," said DMI President DaMenga Weaver.

While the transaction includes the remaining industrial assets on the site, it does not include the adjacent hydroelectric facilities on the Wisconsin River that Domtar will continue to own and operate to provide power to one of its other Wisconsin River mills in Nekoosa.

Domtar's other mill is based in Rothschild. Both Nekoosa and Rothschild, which also are each more than a century old, produce publishing-grade paper.

"Domtar has been working diligently with the Wisconsin Department of Natural Resources and other parties for several years to prepare the site and find the right purchaser for the Port Edwards assets," said Mark Bessette, general manager of the Nekoosa Mill. "We are pleased that DMI will bring new economic activity to the site, for the benefit of the community."

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(c)2013 the Milwaukee Journal Sentinel

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