October 1, 2010 / 12:44 PM / 8 years ago

UPDATE 1-Domtar sells Woodland hardwood pulp mill

* Sale valued at $60 mln plus net working capital of $4 mln

* Sells mill to reduce exposure to hardwood pulp markets

* Sale to International Grand Investment Corp

Oct 1 (Reuters) - Domtar Corp (UFS.TO) (UFS.N) sold its Woodland mill, located in Maine, and hydroelectric assets in New Brunswick, Canada, to International Grand Investment Corp in a deal valued at $60 million plus $4 million working capital, to reduce its exposure to hardwood pulp markets.

The company said majority of its market pulp activities are in softwood and fluff pulp grades and Woodland is its only non-integrated hardwood market pulp mill.

It has an annual production capacity of 395,000 metric tons and currently employs about 300 people, it said.

International Grand Investment Corp, a Delaware-registered company, represents international, individual investors in pulp trade and imports.

The company’s shares, which have gained 11 percent in value since reporting strong second-quarter results in July, closed at C$67 Thursday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Aradhana Aravindan)

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