<b>Norampac Acquires Board Mill, Packing Plants</B

 Norampac Inc. entered into an agreement with Crown Packaging Ltd. and its parent corporation to acquire a containerboard mill and eight paper recovery plants from Crown Packaging Ltd. The containerboard mill, located in Burnaby, B.C., has an annual capacity of 130,000 metric tons of recycled corrugating medium.

In addition to corrugating medium, Norampac plans to produce recycled linerboard and white top linerboard.

The paper recovery plants are located in British Columbia, Alberta and Manitoba. They provide all the recycled paper needed by the mill and the excess volume collected over the mill's requirements is sold in the North American and Asian markets. The transaction is expected to close on April 2, 2001, subject to regulatory approvals.

With this transaction, the annual production capacity of Norampac will exceed 1.4 million tons. Norampac will consolidate its position as the largest containerboard producer in Canada and the 8th largest in North America.

Norampac is a joint venture company owned by Domtar Inc. and Cascades Inc.

March 2001
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