Post on 15-Dec-2015
2007 Global Envelope Alliance Conference
Richard L. Thomas
Senior Vice President, Sales
Domtar Paper Company, LLCJune 4, 2007
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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
North American UFS Producers
4,873,000
3,997,000
1,439,000
1,086,000
461K 410K 280K 267K 241K 207K 196K669K
Top 5 producers
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U.S. UFS Major End-Use Applications
Business Forms
13%
Envelopes
12%
Direct Mail 9%
Commercial Printing
13%
Magazines 3%
Tablets 3%
Books 4%
Cut Size/Reprographics
42%
Misc Converting 3%
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North American Demand 1990-2006
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
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North American Production 1990-2006
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
1990199119921993199419951996199719981999200120022003200420052006
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1903Dominion Tar and Chemical Company is formed. The company is founded in England, with a plant in Nova Scotia, Canada. The company produces tar from coke, and manufactures and treats railroad ties.
1914 The company’s headquarters is established in Montreal.
1929 Dominion Tar becomes a public company, with shares traded on the Montreal and Toronto exchanges.
1961 The company acquires Howard Smith Paper Mills, Canada’s largest paper manufacturer, as well as St. Lawrence Paper.
1965 Dominion Tar changes its name to Domtar Ltd, to reflect the more diverse nature of its businesses.
1973 Domtar acquires Bunton Reid, entering the distribution business
2001 Domtar purchases the bulk of Georgia Pacific’s paper production facilities, including the world class Ashdown, Arkansas facility.
2007Domtar merges its assets with the paper operations of Weyerhaeuser, to form North America’s largest uncoated freesheet producer. Domtar sells its interest in the Norampac linerboard joint venture, becoming a “pure play” bleached pulp and paper producer.
History
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The “New Domtar” Profile
Employees 14,000 Worldwide
Sales $ 6.7 Billion
Locations Head Office – Montreal, Quebec
Operations Center – Fort Mill, South Carolina
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The “New Domtar” - Papers and Pulp
Largest UFS producer in North America Fifteen pulp and paper mills and one single market pulp mill
5.2mm tons of capacity (uncoated and coated)
32 paper machines
16 Converting facilities
1.3mm tons of market pulp
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Leading position in major segments
Grades of PaperDomtarRank
Cut size 1 Offset 1Opaque 1Forms 1LW Coated
(mechanical/groundwood) 7
Colors & ITB 3LW Uncoated 1Trade book 1Coated Bristol 4TCW 3Envelope 2Technology Imaging 2
Number One position in 6 of top 8 grades
Source: Domtar volume and share estimates
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Past Customers satisfied with green product promise Original efforts focused on recycling and pollution reduction Basic compliance with regulations was acceptable Sustainability was a fringe concept
Present Customer expectations are higher – they want proof
Certification
Transparent communication required (sustainability report, web)
Current efforts focus on total environmental impact Companies expected to go above and beyond basic compliance Sustainability on top of corporate agendas
Sustainability Trends
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Customers are more aware:
92% state it is more important for companies to be socially responsible
85% state that the company’s degree of social commitment is an important factor in the buying decision
90% state that they might switch brands if they discovered that a company followed negative citizenship practices
Sustainability Trends
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Forest Certification Development
American Tree Farm System created in 1941 Originated idea of certifying and advertising a well-managed forest
Forest Stewardship Council (FSC) founded in 1993 Developed to prevent forest deterioration globally
Sustainable Forestry Initiative® (SFI) founded in 1994 Created in U.S. to address public concerns about forest
sustainability
Canadian Standards Association (CSA) program developed in 1996 SFI recognizes CSA as a functionally equivalent program
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Forest Certification Development
Forest certification has gained wide acceptance in the past decade.
There are now approximately 385 million tons of certified forestlands in North America, up from nearly none in the early 1990s.
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Domtar and Certification
Domtar has achieved ISO 14001 environmental certification for its forestry management practices in all forestland liscensed or owned by the company.
All mills and converting facilities are either ISO 14001 certified or certifiable.
All mills and converting facilities are third-party certified to the standards of either CSA (Canadian Standards Association), FSC (Forest Stewardship Council) or SFI® (Sustainable Forestry Initiative)
Domtar has earned the support of well-respected environmental organizations, including Rainforest Alliance, WWF and ForestEthics.
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"Wood is a crop. Forestry is tree farming.
-Gofford Pinchot, First chief of the USDA Forest Services
Tree Farming
The term "tree farming" was first used in the 1940s to introduce the public to sustainable forestry terminology in words they could easily understand
Farming implies continual stewardship and production of goods year after year
Source: American Tree Farm System