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United States

Profile: Domtar Corp (UFS.N)

UFS.N on New York Stock Exchange

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2 Dec 2016
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Domtar Corporation, incorporated on August 16, 2006, designs, manufactures, markets and distributes a range of fiber-based products, including communication papers, specialty and packaging papers and absorbent hygiene products. The Company operates through two business segments: Pulp and Paper, and Personal Care. The Company's Pulp and Paper segment is engaged in the designing, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. The Company's Personal Care segment is involved in the designing, manufacturing, marketing and distribution of absorbent hygiene products. The Company is an integrated marketer of uncoated freesheet paper in North America serving a range of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end users. It is also a marketer and producer of a range of incontinence care products, marketed under the Attends, IncoPack and Indasec brand names, as well as infant diapers.

Pulp and Paper

The Company produces over 4.1 million metric tons of softwood, fluff and hardwood pulp at approximately 12 of its over 13 mills. The majority of its pulp is consumed internally to manufacture paper and consumer products, with the balance being sold as market pulp. The Company also purchases papergrade pulp from third parties. The Company has approximately nine pulp and paper mills (over eight in the United States and approximately two in Canada) and over one paper mill, with an annual paper production capacity of approximately 3.4 million tons of uncoated freesheet paper. Its paper manufacturing operations are supported by over 13 converting and forms manufacturing operations, including a network of approximately 10 plants located offsite of its paper making operations. Approximately 79% of its paper production capacity is in the United States, and the remaining over 21% is located in Canada. The Company produces market pulp in excess of its internal requirements at its over three non-integrated pulp mills in Kamloops, Dryden and Plymouth, as well as at its pulp and paper mills in Ashdown, Espanola, Hawesville, Windsor, Marlboro and Nekoosa.

The Company sells approximately 1.7 million metric tons of pulp per year. Approximately 53% of its trade pulp production capacity is in the United States, and the remaining over 47% is located in Canada. The manufacturing of pulp and paper requires wood fiber, chemicals and energy. The fiber used by its pulp and paper mills in the United States is hardwood and softwood. The fiber used at its Windsor pulp and paper mill is hardwood originating from a range of sources, including purchases on the open market in Canada and the United States, contracts with Quebec wood producers' marketing boards, public land where it has wood supply allocations and from its private lands. The softwood and hardwood fiber for its Espanola pulp and paper mill and the softwood fiber for its Dryden pulp mill, are obtained from third parties, directly or indirectly from public lands, through wood supply allocations for the pulp mills. The fiber used at the Company's Kamloops pulp mill is all softwood, originating from third-party sawmilling operations in the southern-interior part of British Columbia.

The Company uses various chemical compounds in its pulp and paper manufacturing facilities that it purchases, primarily on a central basis, through contracts. For pulp manufacturing, it uses various chemicals, including caustic soda, sodium chlorate, sulfuric acid, lime and peroxide. For paper manufacturing, it also uses several chemical products, including starch, precipitated calcium carbonate, optical brighteners, dyes and aluminum sulfate. It owns power generating assets, including steam turbines, at all of its integrated pulp and paper mills, as well as hydro assets at over three locations: Espanola, Nekoosa and Rothschild.

The Company's business papers include copy and electronic imaging papers, which are used with ink jet and laser printers, photocopiers and plain-paper fax machines, as well as computer papers, preprinted forms and digital papers. These products are primarily for office and home use. The Company's commercial printing and publishing papers include uncoated freesheet papers, such as offset papers and opaques. These uncoated freesheet grades are used in sheet and roll fed offset presses across the spectrum of commercial printing end-uses, including digital printing. Its publishing papers include tradebook and lightweight uncoated papers used primarily in book publishing applications, such as textbooks, dictionaries, catalogs, magazines, hard cover novels and financial documents. These products also include base papers that are converted into finished products, such as envelopes, tablets, business forms and data processing/computer forms. The Company also produces paper for several specialty and packaging markets. These products consist primarily of thermal printing, flexible packaging, food packaging, medical packaging, medical gowns and drapes, sandpaper backing, carbonless printing, labels and other coating and laminating applications. It also manufactures papers for industrial and specialty applications, including carrier papers, treated papers, security papers and specialized printing and converting applications.

The Company sells business papers primarily to paper stationers, merchants, office equipment manufacturers and retail outlets. The Company distributes uncoated commercial printing and publishing papers to end users and commercial printers, mainly through paper merchants, as well as selling directly to converters. The Company sells its specialty and packaging papers mainly to converters, who apply a further production process, such as coating, laminating, folding or waxing to its papers before selling them to a range of specialized end users. The Company sells market pulp to customers in North America mainly through a North American sales force while sales to most overseas customers are made directly or through commission agents. It maintains pulp supplies at located warehouses. The Company's pulp products include softwood, fluff and hardwood kraft. Its pulp is used in a range of end products, such as diapers and personal hygiene products; bathroom and facial tissue; specialty and packaging papers; building products, and electrical insulating papers.

Personal Care

The Company's Personal Care business consists of absorbent hygiene products, including both adult incontinence and baby diapers. It is a supplier of adult incontinence products sold into North America and Europe, servicing institutional and consumer channels, in addition to its customers brands. The Company operates over seven manufacturing facilities. At its Jesup facility, the Company has a research and development solutions and production lines, which manufacture airlaid and ultrathin laminated absorbent cores and it also has research and development activities in its division office in Raleigh, North Carolina. The Company operates in the United States and in Europe. It has operations in Greenville, North Carolina; Waco, Texas; Delaware, Ohio; Aneby, Sweden; Jesup, Georgia; Toledo, Spain, and Sant Vicenc de Castellet, Spain.

Company Address

Domtar Corp

234 Kingsley Park Drive
FORT MILL   SC   29715
P: +1803.8027500
F: +1302.6745266

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