Solna, Sweden based Billerud announced that it has reached terms with the Capital Recovery Group, LLC for the sale of the idled Wisconsin Rapids Mill and related assets.
The company said that the decision came following extensive exploration of viable and sustainable alternatives for the mill since its idling in July 2020. The transaction is expected to close in April 2024.
“Billerud believes that this decision is the best alternative for all stakeholders,” said Tor Lundqvist, Billerud’s Deputy President and Senior Vice President of Operations for North America. “The sale of the idled Wisconsin Rapids Mill and related assets represents a strategic decision to focus on core business objectives, optimize resources, and align with our long-term strategy to drive sustainable growth. We look forward to finalizing the transaction in the near future and continuing to invest in the converting operation at the site.”
The company reaffirmed its commitment to owning and operating the Wisconsin Rapids Converting Facility.
The facility plays an important role in converting rolls of paper made at its two Michigan mills into folio and digital sheets, as well as sheeting cartonboard imported from its European mills.
The converting facility and two Michigan mills strategically position Billerud to deliver products and services quickly, efficiently and cost-effectively to its network of valued customers.
“We extend our gratitude to the Wisconsin Rapids team and community for their dedication and support of the mill, our company and our customers throughout the strategic exploration process,” said Kevin Kuznicki, Billerud’s President and General Counsel for North America.
“We are proud of the significant role the mill has played in the paper and pulp industry’s history and our longtime record of community involvement and partnership.
“We look forward to continuing our community support with the ongoing operation of the Wisconsin Rapids Converting Facility, keeping more than 130 jobs in the area, as well as indirectly supporting thousands of jobs throughout our supply chain.”
During the interim period preceding the closure, Billerud has authorized CRG, LLC to begin promoting a public auction for certain idled and obsolete equipment. This auction will occur following the transaction close.
Billerud has nine production units in Sweden, USA, and Finland with around 5,800 employees in over 13 countries.
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