Profile: Domtar Corp (UFS.N)

UFS.N on New York Stock Exchange

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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 in two business segments: Pulp and Paper and Personal Care. The Company’s Pulp and Paper segment is engaged in the design, manufacturing, marketing and distribution of communication papers, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. The Company’s Personal Care segment is involved in the manufacturing, marketing and distribution of absorbent hygiene products. The Company is an integrated marketer and manufacturer of uncoated freesheet paper in North America for a variety of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end-users. It is also a marketer and producer of a broad line of incontinence care products, marketed under the Attends, IncoPack and Indasec brand names, as well as infant diapers.

Pulp and Paper

The Company produces 4.1 million metric tons of softwood, fluff and hardwood pulp at 12 of its 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 nine pulp and paper mills (eight in the United States and two in Canada) and 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 13 converting and forms manufacturing operations, including a network of 10 plants located offsite of its paper making operations. Approximately 79% of its paper production capacity is in the United States, and the remaining 21% is located in Canada. The Company produces market pulp in excess of its internal requirements at its 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 depending on market conditions. Approximately 53% of its trade pulp production capacity is in the United States, and the remaining 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, both being readily available in the market from multiple third-party sources. The fiber used at its Windsor pulp and paper mill is hardwood originating from a variety 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 numerous 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 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. Design papers, a sub-group of commercial printing and publishing papers, have features of color, brightness and texture and are targeted towards graphic artists, design and advertising agencies, primarily for special brochures and annual reports. 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 of thermal printing, flexible packaging, food packaging, medical packaging, medical gowns and drapes, sandpaper backing, carbonless printing, labels and other coating and laminating applications. The Company 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 variety 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.

Personal Care

The Company's Personal Care business consists of the manufacturing, marketing and distribution of absorbent hygiene products, marketed primarily under the Attends, IncoPack and Indasec brand names. It is a supplier of adult incontinence products sold into North America and Europe, serving institutional and consumer channels. The Company operates 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 head office in Raleigh, North Carolina. The Company operates in the United States and in Europe: Greenville, North Carolina; Waco, Texas; Delaware, Ohio; Aneby, Sweden; Jesup, Georgia; Toledo, Spain, and Sant Vicenc de Castellet, Spain.

Company Address

Domtar Corp

395 De Maisonneuve Blvd. W.
MONTREAL   QC   H3A 1L6
P: +1514.8485555
F: +1514.8486878

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