Domtar

Jean Moreau , President and CEO of CelluForce, was accompanied by the Canadian Minister of Natural Resources, the Honourable Joe Oliver ; Québec's Minister for Finance, Alain Paquet; John D. Williams, President and CEO of Domtar; and Pierre Lapointe , President and CEO of FPInnovations.

CelluForce is ramping up its production of NCC with a target of reaching a 1,000 kg (1 metric ton) per day production rate in 2012. Trials integrating NCC into the manufacturing process of different products are currently taking place through technical collaboration agreements between CelluForce and 15 companies based in Canada , the United States , Europe and Asia in four main industrial sectors: paints and coatings, films and barriers, textiles, and composites.

Plant construction extended over a 14-month period and was completed on time. The Canadian and Québec governments made a significant contribution to the financing of the $36 million plant with $23.2 million coming from Natural Resources Canada (Pulp and Paper Green Transformation Program and Transformative Technologies Program) and $10.2 million from Québec's Natural Resources and Wildlife Department.

Grateful to all those who have contributed thus far to this exciting venture, Jean Moreau declared: "This is the stellar result of the winning combination of Domtar's operational expertise with FPInnovations' technical and scientific knowledge to develop an effective manufacturing process for NanoCrystalline Cellulose. Governments were receptive to our project, which was in line with their innovation and forestry industry strategies, while our enthusiastic employees were thrilled to participate in such a unique and innovative initiative. Today we celebrate a milestone that enables us to be the first in he world on the path to creating a significant market for NCC. There is an exciting future ahead for NCC and CelluForce."

"Our investment in the CelluForce project is part of a larger story at Domtar around unlocking greater value from wood fiber," added John D. Williams, Domtar President and Chief Executive Officer. "We are thrilled to be partners in this world-class venture that aligns so squarely with our business growth objective to become a global leader in fiber innovation."

Pierre Lapointe , President and CEO of FPInnovations stated that "This is a significant milestone in Canadian innovation history. We have demonstrated that through investment in public-private partnerships, Canada is taking a leadership position in developing and deploying game changing innovations, such as NCC, to help the transformation of the forest industry and to create wealth for Canadians. We are very proud that this innovation developed by FPInnovations' research team is now moving from the laboratories to the marketplace. This is a great day for FPInnovations' staff and all our partners."

NCC is an advanced material derived from wood fibre that improves the strength, durability and toughness of products. It can reduce damage caused by wear, abrasion and light. This high-value nanomaterial can also be incorporated into systems to make light reflective structures (tunable from ultraviolet to infrared), impermeable to gas and stable over time. NCC can transform the performance of existing products as well as help create new, unique and improved products. Natural, renewable, recyclable, compostable and bio-degradable, NCC also has the potential to become a contributor to the green economy in numerous industrial sectors in the coming decades.

NCC's remarkable properties will lead to commercial applications largely exceeding those of traditional wood fibre products. CelluForce will, on a worldwide basis, market NanoCrystalline Cellulose for strength applications under the CelluForce Impact^TMbrand, and optical applications under the CelluForce Allure^TMbrand.

About CelluForce

CelluForce is the world leader in the commercial development of NanoCrystalline Cellulose (NCC). The company is a joint venture of Domtar Corporation and FPInnovations. CelluForce manufactures NCC in the world's first plant of its kind, located in Windsor, Québec, develops new applications for it, markets and sells it. The company currently has a workforce of 30 employees and its head office is in Montreal .

About FPInnovations

FPInnovations is a not-for-profit world leader that specializes in the creation of scientific solutions in support of the Canadian forest sector's global competitiveness and responds to the priority needs of its industrial and government members. It is ideally positioned to perform research, innovate and deliver state-of-the-art solutions for every area of the sector's value chain, from forestry operations to consumer and industrial products. FPInnovations' staff numbers more than 500. Its research laboratories are located in Québec City, Montréal, Thunder Bay, Edmonton and Vancouver , and it has technology transfer offices across Canada.

About Domtar

Domtar Corporation is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publishing as well as converting and specialty papers including recognized brands such as Cougar^®, Lynx^®Opaque Ultra, Husky^®Opaque Offset, First Choice^®and Domtar EarthChoice^®Office Paper, part of a family of environmentally and socially responsible papers. Domtar also produces a complete line of incontinence care products and distributes washcloths marketed primarily under the Attends^®brand name. Domtar owns and operates Ariva^TM,an extensive network of strategically located paper distribution facilities. The Company employs approximately 8,800 people.

The workers -- mostly general laborers, iron workers and carpenters -- have spent recent months pouring concrete and erecting the 11-story steel frame for a building that ultimately will house the plant's boiler, said Randy DeMeuse, vice president of operations for The Boldt Co., the Appleton-based firm overseeing construction.

The plant, a We Energies and Domtar Corp. project, remains on schedule after crews began to build the facility this summer, We Energies spokesman Brian Manthey said. The plant at Domtar's Rothschild paper mill will generate steam for the papermaker and electricity for We Energies and is expected to be complete by late summer of 2013.

Wausau Daily Herald - Biomass plant construction going full steam ahead

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The Paper Trail (www.domtarpapertrail.com) develops personalized reports that measure Domtar products across five categories: water usage, the distance its fiber travels to a paper mill, greenhouse gas (GHG) emissions, waste sent to landfills and renewable energy usage. The data is displayed in real-world equivalents, with comparisons to things such as the amount of water the average household uses or the amount of waste it generates. The Paper Trail also illustrates how Domtar compares to the rest of the industry in these categories. In cases where the environmental impact can be improved, Domtar voluntarily discloses the information, as well as the efforts underway to make improvements.

In addition, the Paper Trail provides users with a look at the economic impacts of four Domtar mills on their surrounding communities in the United States and Canada. For example, the Johnsonburg mill, which has supported generations of employees since beginning operations in 1888, today has an estimated annual economic impact of $229 million. Visitors to The Paper Trail can also learn how the Johnsonburg mill helps local wildlife through soil quality improvement projects and even an on-site fish hatchery.

"We're proud that we have long been considered an environmental leader, and part of that leadership means providing transparency," said Lewis Fix, Domtar Vice President of Sustainable Business and Brand Management. "We continue to find unique ways to tell the Domtar story, by showing what we're doing well, and where we need to improve."

"Paper from sustainably-managed forests provides an environmentally and socially responsible choice for our customers," Fix said. "When they see the differences, they can use our products with even greater confidence."

About Domtar

Domtar Corporation (NYSE: UFS) (TSX: UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publishing as well as converting and specialty papers including recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice® Office Paper, part of a family of environmentally and socially responsible papers. Domtar also produces a complete line of incontinence care products and distributes washcloths marketed primarily under the Attends® brand name. Domtar owns and operates ArivaTM, an extensive network of strategically located paper distribution facilities. The Company employs approximately 8,800 people. To learn more, visit www.domtar.com.