(NYSE: UFS) (TSX: UFS)
MONTREAL, June 20, 2011 /CNW Telbec/ - Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced that its Board of Directors has authorized
the signing by Domtar Paper Company, LLC (a wholly-owned subsidiary of
Domtar) of the revised project agreements with Wisconsin Electric Power
Company ("We Energies") to participate in the project that will see We
Energies construct a biomass-fueled power plant at Domtar's Rothschild,
Wisconsin paper mill site. The revised project agreements have been
agreed to by the parties and reflect the order points contained in the
Certificate of Authority issued on May 12, 2011 by the Wisconsin Public
Service Commission ("PSC"). Under the timeline set out by the PSC, We
Energies must submit a compliance filing within a 45-day period from
the date of the Certificate of Authority, indicating that the order
points have been addressed.
"This project is an innovative way to improve our mill's competitiveness
and environmental performance while providing more green power to the
State of Wisconsin," said John D. Williams, President and Chief
Executive Officer of Domtar. "Wood is a renewable resource that can be
used for producing pulp, paper, and electricity, and we are proud to
leverage our expertise in sustainable fiber procurement."
The project is expected to create approximately 400 construction jobs
and 150 permanent jobs in the surrounding community, including jobs for
independent wood suppliers and haulers. Wood, waste wood and sawdust
will be used to produce 50 megawatts of green electricity for the grid
and to support Domtar's papermaking operations in Rothschild under a
steam supply agreement. The project will result in a highly efficient
use of bio-mass resources and Domtar mill's infrastructure while
allowing Domtar to retire less efficient boilers, virtually eliminating
its use of fossil fuels at the mill. The construction is expected to
take 30 months for a start-up by the end of the third quarter of 2013.
Domtar Corporation is approximately 75% energy self-sufficient across
its North American manufacturing footprint of 13 pulp and paper mills.
The average Domtar pulp and paper facility draws approximately 87% of
its thermal energy (energy required to make steam) from renewable fuels
such as biomass and spent cooking liquor.
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 owns and operates ArivaTM, an extensive network of strategically located paper distribution
facilities. The Company employs approximately 8,500 people. To learn
more, visit www.domtar.com.
SOURCE DOMTAR CORPORATION
For further information:
| MEDIA AND INVESTOR RELATIONS || FOR MORE INFORMATION |
| Pascal Bossé |
Vice-President, Corporate Communications and
| Craig Timm |