The 225 York County employees of Weyerhaeuser Co. will be working for a spin-off company in six months, the company announced today.
Weyerhaeuser has reached a $3.3 billion deal to combine its fine paper business and related assets with Domtar Inc., a move that affects a Rock Hill plant and makes the Fort Mill office the operating headquarters of the new company.
The new company, with the head office in Montreal, will have about 14,000 employees, making it the world’s second largest fine paper manufacturing company.
“This compelling strategic and operational fit will make the ‘new Domtar’ financially stronger, with prominent brands, a lower cost base, and the necessary scale and scope to succeed in the highly competitive global marketplace,” said Raymond Royer, Domtar president and chief executive officer who will lead the new paper operations.
The deal, which still needs approval from shareholders, antitrust agencies and securities regulators, is expected to close in the first quarter of 2007. Weyerhaeuser and Domtar will continue to operate separately until the transaction closes.
Weyerhaeuser, WY on the New York Stock Exchange, has 150 employees in Fort Mill and 75 in Rock Hill.