LOCK HAVEN — First Quality Enterprises has acquired a pulp mill in Dryden, Ontario, as it shores up its supply chain serving the three local tissue and paper towel manufacturing plants.

The privately owned company announced the purchase Tuesday, saying the Dryden mill “produces high quality Northern Bleached Softwood Kraft (NBSK) pulp for customers in North America.”

The pulp mill was previously owned by Domtar Corporation, a wholly-owned subsidiary of the Paper Excellence Group.

Jim Dodge, FQ’s chief financial officer, said, “First Quality saw this as an excellent strategic investment given the knowledgeable leadership team, premium quality NBSK coming from the mill and the access and availability to high quality fiber supplies long term. We look forward to partnering with the existing mill team members, customers, suppliers and community stakeholders to continue the mill’s successful history of local engagement and economic development.”

The purchase price was not disclosed.

Mike Flanagan, CEO of the Clinton County Economic Partnership, welcomed the news.

“First Quality is an outstanding company and plays an integral part in the economic life of our area. We will do what we can to support their operations,” he said.

FQ’s three operations along Bald Eagle Creek in Castanea Township employ more than 500 people, encompass more than 1.7 million square feet of manufacturing, warehouse and office space and produce toilet paper and paper towels.

The company also have extensive assets in the Clinton County Industrial Park producing adult incontinence care products, including adult briefs, male guards, underpads, washclothes and more. The plants also manufacture baby diapers, training pants, baby wipes and youth pants.

The company expects to close the deal in the third quarter of 2023 as it remains “subject to customary closing conditions, including receipt of required regulatory approvals.”

First Quality is the largest private employer in Clinton County and has been among the fastest growing companies in Pennsylvania.

The First Quality family of companies is a closely held, diversified group of companies manufacturing, selling and distributing branded and private label absorbent hygiene, paper and packaging products into the healthcare, retail and commercial channels.

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens. With approximately 5,800 employees serving more than 50 countries around the world, Domtar’s principal executive office is in Fort Mill, S.C. The Paper Excellence Group is a privately-held holding company that oversees individual pulp and paper business units. Its operations include the manufacturing of pulp and specialty, printing, writing and packaging papers, producing over 7 million tons annually with a workforce of over 10,000 in its nearly 40 locations across the Americas and Europe.