Georgia-Pacific Completes Sale of Paper Manufacturing Assets to Domtar
Press release from the issuing company
ATLANTA, Aug. 7 Georgia-Pacific Group today announced it has completed the sale of a portion of its pulp and paper assets to Domtar Inc. (NYSE: DTC; Toronto) for $1.65 billion. Proceeds from the sale will be used to repay debt.
"Completion of this divestiture -- the largest in the company's history -- is a major milestone in our ongoing transformation,'' said A.D. "Pete'' Correll, chairman and chief executive officer of Georgia-Pacific. "In the first seven months of 2001, we have made tremendous progress in realigning our portfolio of assets.''
The assets sold were Georgia-Pacific's stand-alone uncoated fine paper mills at Ashdown, Ark.; Nekoosa and Port Edwards, Wis.; and Woodland, Maine, as well as associated pulp facilities. These operations employ approximately 3,200 people.
Georgia-Pacific will continue to own and operate white paper mills at Camas, Wash.; Crossett, Ark.; Port Hudson, La.; and Wauna, Ore. In addition, Georgia-Pacific's Unisource subsidiary remains the sole national distributor of Xerox branded papers.
Also today, Georgia-Pacific announced that George Wurtz, senior vice president - consumer products manufacturing - central, will succeed David Paterson as president - paper and bleached board. Paterson was previously named executive vice president - pulp and paperboard.
In his new role, Wurtz will have responsibility for Georgia-Pacific's ongoing communications paper business, as well as the company's kraft paper and bleached board businesses. He will oversee an organization that will include manufacturing facilities at Port Hudson, La.; Crossett, Ark.; and Palatka, Fla.
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