Norampac Inc., the largest containerboard producer in Canada and the 8th largest in North America, will sell its paper recovery division to Metro Waste Paper Recovery Inc., in order to focus on its core packaging operations.

In the deal, expected to close January 2, 2002, Norampac will sell off eight paper recovery plants located throughout Canada in addition to its Burnbay, British Columbia-based containerboard mill. The transaction enables Metro Waste to run the paper recovery operations and will allow Norampac to increase its current equity participation in Metro Waste from 27.5% to 46%.