Aditya Birla group acquires Terrace Bay Pulp Mill for around Rs2,000 crore
06 Jul 2012
The Aditya Birla Group has acquired North American firm Terrace Bay Pulp Mill, owned by Buchanan Forest Products that had been shut for the past two months, for $360 million(approximately Rs1,960 crore).
The acquisition, which is expected to close by 31 July 31 2012, is being executed through the Ditya birla Group's Canada-based special purpose vehicle AV Terrace Bay Inc.
''The acquisition of the Terrace Bay Mill and its subsequent conversion into a dissolving grade pulp mill is a major strategic move. In the VSF business, we enjoy global leadership. To sustain ongoing growth, we have an integrated business model, spanning the entire value chain from plantation to pulp to fibre,'' Aditya Birla Group Chairman Kumar Mangalam Birla said.
The group will invest over $250 million in a phased manner to convert the mill to produce dissolving grade pulp with a capacity of 280,000 tpa. Until the conversion, which is likely to happen in FY16, the mill will produce and sell paper grade pulp.
The paper grade pulp mill should restart by October 2012. The Terrace Bay Pulp Mill is considered an anchor mill due to its location and its significant consumption of residual chips produced by the regional sawmills.
''The Terrace Bay Mill, upon conversion, will be geared to provide superior quality pulp for our VSF plants worldwide,'' Birla added.