DOMTAR ANNOUNCES OFFICIAL START UP OF NEW TURBINE GENERATOR AT MARLBORO, SC MILL

TICKER SYMBOL
UFS (NYSE, TSX)

MONTREAL, Jan. 20 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) celebrated the start-up of its newly installed 50 megawatt bio-fueled steam turbine generator at its Marlboro (Bennettsville) mill in South Carolina today. Domtar invested approximately $40 million in 2010 to complete this project. Now fully operational, the new turbine has made the mill more energy efficient.

Domtar has entered into a 15-year agreement with Santee Cooper, South Carolina's state-owned electric company, for the purchase of up to 50 megawatts of green power. The renewable energy generated by the turbine would be enough to power roughly 31,000 South Carolina homes.

Domtar would like to recognize the State of South Carolina for the significant role it has played in the success of this project. To celebrate the start-up, Domtar organized a "breaker-throw" event at the mill this morning, which included the participation of several State dignitaries as well as Domtar executives. 

Domtar has been long committed to sustainable business practices and has implemented energy efficiency programs at all of its facilities to help reduce the impact of its operations on the environment. Since 2002, Domtar's increased reliance on lower-emitting biomass as a fuel source has resulted in a 20% reduction in greenhouse gas emissions intensity. Domtar's self-generation of electricity is at approximately 67%, which represents a 26% increase since 2002. Domtar's use of renewable energy stands at approximately 74% of total energy use, which represents an 18% increase since 2002.

About Domtar
Domtar Corporation (NYSE/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 owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. The Company employs approximately 8,500 people. To learn more, visit www.domtar.com.

Forward-Looking Statements
All statements in this press release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Forward-Looking Statements" and "Risk Factors" of the latest Annual Report on Form 10-K filed with the SEC as updated by the Company's latest Quarterly Report on Form 10-Q. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.


SOURCE DOMTAR CORPORATION

For further information:

MEDIA AND INVESTOR RELATIONS     MORE INFORMATION
Pascal Bossé
Vice-President, Corporate Communications and
Investor Relations
Tel.: 514-848-5938
    Stefan Nowicki
Manager, Communications and Government
Relations
Tel.: 803-802-8099

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DOMTAR CORPORATION

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