The 225 York County employees of Weyerhaeuser Co. will be working for aspin-off company in six months, the company announced today.
Weyerhaeuser has reached a $3.3 billion deal to combine its fine paperbusiness and related assets with Domtar Inc., a move that affects a RockHill plant and makes the Fort Mill office the operating headquarters of thenew company.
The new company, with the head office in Montreal, will have about 14,000employees, making it the world’s second largest fine paper manufacturingcompany.
“This compelling strategic and operational fit will make the ‘new Domtar’financially stronger, with prominent brands, a lower cost base, and thenecessary scale and scope to succeed in the highly competitive globalmarketplace,” said Raymond Royer, Domtar president and chief executiveofficer who will lead the new paper operations.
The deal, which still needs approval from shareholders, antitrust agenciesand securities regulators, is expected to close in the first quarter of2007. Weyerhaeuser and Domtar will continue to operate separately until thetransaction closes.
Weyerhaeuser, WY on the New York Stock Exchange, has 150 employees in FortMill and 75 in Rock Hill.