Brazil-based Suzano S.A. has finalized its acquisition of Pactiv Evergreen Inc. paper mills in Pine Bluff and Waynesville, N.C., for $110 million, subject to “customary price adjustments,” according to an announcement.
Suzano revealed the transaction Monday, completing a move it announced in July.
The Pine Bluff and Waynesville mills manufacture liquid packaging board and cupstock. Adding the mills to its profile also adds about 420,000 metric tons per year of integrated paperboard to Suzano’s production capacity, the company said.
Already considering itself the world’s largest pulp producer, Suzano says it will now become a major supplier of papers used to produce liquid packaging board in North America.
“We aim to scale our operations to meet the growing global demand for paper-based packaging,” Fabio Almeida, Suzano’s executive vice president of paper and packaging, said in a news release. “Our successful track record of asset integration gives us confidence that we will be able to enhance operational efficiency, production scale, and safety standards at these units, opening up new opportunities for the employees and positively impacting the local communities of Pine Bluff and Waynesville.”
Independent reporting for Pine Bluff & Jefferson County since 1879.
It was reported in July workers at both mills would be offered employment with Suzano. The Pine Bluff mill had 770 employees as of March 2023, when “strategic alternatives” for the site were first announced, according to The Commercial.
“The closing of this transaction marks an important milestone as we focus on our core North American converting operations,” Michael King, Pactiv Evergreen’s president and chief executive officer, said in another news release. “I want to thank the employees at Pine Bluff and Waynesville for their years of dedication and commitment to Pactiv Evergreen and to our customers. In addition to facilitating our transition to a capital light business model, we expect the transaction to improve our profitability and cash flows and strengthen our balance sheet.”
The Pine Bluff mill is located on Arkansas 81 north near U.S. 63, east of the city. It was previously known as International Paper Co. and Evergreen Packaging.
Suzano operates an office in Fort Lauderdale, Fla., and research and innovation campus near Vancouver, British Columbia, Canada.