Domtar's Espanola mill nets $28M in federal funds: New equipment, processes will allow paper mill to produce new product.

Domtar Inc. will use $28.8 million in federal funding to commercialize new products at its Espanola mill that could replace single-use plastics in things like medical packaging and food wrap.

The funding, announced on July 23 by Nickel Belt MP Marc Serre, comes from Innovation, Science and Economic Development Canada.

As part of a $57.5-million plan, Domtar will implement new equipment and processes to commercialize its 'Stealth Fibre Technology,' which will produce stronger paper and allow for the production of innovative products that could replace single-use plastics when it comes to things like medical packaging and food wrap.

"We are pleased to partner with the Government of Canada on this important initiative to upgrade the Espanola mill's infrastructure and improve its environmental performance," Michael D. Garcia, president of Domtar's pulp and paper division, said in a news release.

"This investment will help the mill deliver technical innovation to produce products that could help reduce the use of single-use plastics."

The project is expected to increase the company's...