RockTenn to buy 55-MW biomass plant in Washington

(SeeNews) - Mar 4, 2014 - US packaging firm RockTenn (NYSE:RKT) said Monday it had agreed to buy a 55-MW biomass cogeneration plant in Washington state from Simpson Lumber Co LLC.

The facility is operated by the Simpson Tacoma Kraft paper mill in Tacoma, which RockTenn will acquire under a USD-343-million (EUR 249m) agreement with Simpson Lumber. The power plant has been operating since 2009 and is selling its output under a long-term contract.

The Tacoma-based paper mill achieved an output of 465,000 tonnes in 2013 from two paper machines and two pulp dryers. RockTenn plans to invest USD 60 million in the facility in the following three years. The buyer has also signed a seven-year wood chip supply contract with Simpson Lumber Co.

The deal is subject to customary closing conditions and regulatory clearance.

(USD 1.0 = EUR 0.727)

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