The transaction was completed on 13 May, and Sappi will now start to integrate the new business into its North American operations.

The South African papermaker said the move would provide it with synergies and savings of about 82m ($120m) once the business was fully integrated.

The transfer of production of 140,000 tonnes of coated fine paper at the Brainerd Mill, which Potlatch is to close as part of the deal, is also expected to go through smoothly.

Trials have already been done to ensure the successful transfer of manufacturing to Cloquet and Sappis other production units.

Sappi has also announced a new management structure for Sappi Fine Paper North America, with former Somerset Mill production manager Tom Collins transferring to become director of the Cloquet Mill.

Sappi is also cutting staff numbers at Cloquet by 200, leaving 580 hourly employees at the mill, most of whom were already employed at the site.

Story by Andy Scott