Fort Mill, South Carolina based Domtar announced on August 8 that it will convert a printing and writing paper mill in Kingsport, Tennessee, to produce recycled packaging using OCC and mixed paper. The mill, which has been idled since April due to declining customer demand, will be converted to produce recycled linerboard and medium materials
The conversion will take 28 to 31 months to complete and is expected to be operational by the first quarter of 2023, at the latest, according to Domtar.
“Once in full operation, the mill will produce and market approximately 600,000 tons of high-quality recycled linerboard and medium, providing the company with a strategic footprint in a growing market,” according to a Domstar spokesperson.
The mill will use about 660,000 tons per year of OCC and mixed paper as feedstock. The recycled fiber conversion will cost between $300 million and $350 million. The mill project joins a growing list of facilities converting or being developed to produce containerboard to satisfy the demand for packaging for e-commerce, which has only increased during the COVID-19 pandemic.
Domtar operates 13 pulp and paper mills in North America.