Domtar is the third largest producer of uncoated freesheet paper in North America. It is also a leading manufacturer of business papers, commercial printing and publication papers, and technical and specialty papers. Domtar manages according to internationally recognized standards 18 million acres of forestland in Canada and the United States, and produces lumber and other wood products. Domtar has 9,000 employees across North America. The company also has a 50% investment interest in Norampac inc., the largest Canadian producer of containerboard.

Domtar's sales are in four segments. Papers represent 61% of the company's sales, paper merchants 15%, packaging 13% and finally wood 11%.

Domtar has aligned its product offering with the public's growing preference for sustainable development, the Company is adding value to its relationships with key customers who have incorporated sustainability criteria into their corporate procurement policies. Our Domtar EarthChoice® line of 13 coated and uncoated FSC-certified paper products - endorsed by the Rainforest Alliance and welcomed by Forest Ethics and the World Wildlife Fund - has met with gratifying market acceptance. Green products such as the Domtar EarthChoice® paper series and FSC-certified lumber provide consumers with an opportunity to express their support for a sustainable planet.

Locally in Timiskaming, Domtar is a 2/3 partner in the Elk Lake Planing Mill Ltd. with Liskeard Lumber Limited being the other partner. Three harvesting contractors, H. Fiset & Sons (Elk Lake), Rosko Forestry Operations (Kirkland Lake) and Wincikaby Logging (Englehart) produce 70% to 75% of their annual roundwood requirements. The remaining 25% to 30% is purchased on the open market from numerous independent suppliers throughout northeast Ontario. The bulk of these suppliers are located in the Timiskaming District.

In the past few years, Domtar has embarked on a continuous improvement program both in the forest and in the mill. The purpose of this program is to challenge the traditional thinking of the players in the local forest industry. By implementing new or improved methods of harvesting timber and processing it into lumber, Domtar is committed to delivering top quality, timely and cost competitive products to the customer.

In 1998, Domtar and Liskeard Lumber invested $6 million to upgrade the sawmill in Elk Lake. In 2002-03, the planer was upgraded, a new dry kiln constructed and an oil-fired boiler added to provide heat for the new kiln. A Nicholson debarker was installed in the sawmill in 2003 to replace and older machine. In 2004, a FujiKing debarker was installed to debark short logs thus enabling the production of chips from these logs. In 2005, following the March 17 fire that totally destroyed the planing mill, the companies immediately began planning then constructing a new, state-of-the-art planing mill. Less than nine months after the devastating fire, the new planing mill commenced operations. Also in 2005, the sawmill added a third shift as a result of a wood supply exchange between Domtar and Tembec. In 2006, fire pumps are being replaced to improve the fire protection capabilities of the mill and the burner in the oil-fired boiler will be upgraded to increase the availability of heat for the dry kilns. Several other projects are being planned and considered for future improvements to the sawmill and kilns. These are dependent upon the internal approval and allocation of funds for capital projects.

Domtar Inc. is happy and proud to assist in the stewardship of Timiskaming's future through membership in the TFAI, through lumber business and its associated employment and through support of the many great local community initiatives that make the area unique.

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