Domtar and Town of Espanola reach tax agreement

ESPANOLA, ON, Sept. 15, 2014 /CNW Telbec/ - The Corporation of the Town of Espanola and Domtar Inc. are pleased to announce that an agreement has been reached resolving outstanding tax matters.

"We are relieved to arrive at a resolution with Domtar Inc.," says Mayor Mike Lehoux,  "This agreement will help to stabilize taxation and contribute to an economic, social and cultural climate conducive to growth."

"We are pleased to have reached this important agreement with the Town," said Scott Mosher, general manager of the Espanola pulp and paper mill.  "We believe it is in our mutual interest to ensure a sustainable mill operation in Espanola and contribute to a sustainable community, and we believe this agreement accomplishes these objectives."

The agreement settles outstanding matters with respect to the mill's assessed value from 2009-2016 and industrial tax rates from 2013-2016.

About the Town of Espanola
The Town of Espanola is located on Highway 6 in the Sudbury District of Northeastern Ontario. It has a population of roughly 5,000 people who enjoy the benefits of quality lifestyles, natural and heritage amenities, and essential services. The Town is well-established with a historical urban townsite, and a significant rural area representing the amalgamation of two former municipal entities, the Town of Espanola and the Township of Merritt. The Town functions as a service and retail centre for the Lacloche - Manitoulin area which has a population of approximately 40,000. Espanola serves as a junction between the Highway 17 east-west corridor from Sudbury to Sault Ste Marie and Highway 6 to Manitoulin Island. The Town also functions as a bedroom community for the urban centre of Sudbury which is only 45 minutes away.

About Domtar
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a broad line of incontinence care products marketed primarily under the Attends®, IncoPack and Indasec® brand names as well as baby diapers. In 2013, Domtar had sales of US$5.4 billion from some 50 countries. The Company employs approximately 10,000 people. To learn more, visit

SOURCE: Domtar Corporation

For further information:

Bonny Skene
Regional Manager, Public Affairs

Cynthia Townsend
Town of Espanola

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Domtar Corporation

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