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Domtar Invests up to $350 Million to Convert Kingsport, Tennessee, Paper Plant

08/10/2020
A leading provider of a wide variety of fiber-based products including; communication, specialty packaging papers, and market pulp, Domtar will invest up to $300 million to convert its manufacturing operations, from uncoated freesheet to containerboard production, in Kingsport, Tennessee.

Domtar will construct a new warehouse and retrofit its existing building and site in order to transition to manufacturing containerboard products made from 100 percent recycled cardboard. Construction will begin in late 2020 and is expected to be complete in the first quarter of 2023. The converted mill will employ approximately 150 people.

“Domtar is taking decisive action to restructure its business in a way that allows the company to remain competitive in light of current business conditions that have been adversely impacted by the Coronavirus pandemic. Repurposing the Kingsport Mill is consistent with Domtar’s long-term strategic plan on converting high quality assets to match market conditions, positioning the company for the future,” John Williams, Domtar President and CEO said.

Opened in 1916, Domtar’s Kingsport pulp and paper mill is a stand-alone energy source, which reuses up to 100 percent of its manufacturing waste. The facility has an estimated regional economic impact of $714 million.

“Tennessee’s existing businesses are vital to the health of our state’s economy, and we’re pleased to support Domtar’s project as they invest more than $300 million in Northeast Tennessee. Domtar’s investment demonstrates the company’s continued commitment to Kingsport, and we look forward to the economic impact this project will provide to Sullivan County,” said TNECD Commissioner Bob Rolfe.

“I am pleased that the City of Kingsport was able to reach an agreement with Domtar that will help enable them to smoothly transition to a new product line in a very competitive and turbulent business environment. Providing city assistance means that a long-standing community partner will stay in Kingsport and preserve a significant number of jobs. We greatly appreciate the assistance from the State of Tennessee as well as the local assistance of NETWORKS Sullivan Partnership. Finally, we look forward to sustaining this collaborative and productive relationship well into the future,” Kingsport Mayor Pat Shull noted.

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