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Domtar 2016 Annual Report

By working smart, we have positioned Domtar as the world’s third largest manufacturer of high-quality, responsibly-made fluff pulp, a growing market. Global demand for products with absorbent cores made from fluff pulp is expanding at an annual rate of 3.5%, fuelled by the increased penetration of infant diapers in developing markets and growing demand for adult incontinence products from an aging population. We started manufacturing fluff pulp in Plymouth in 1980, but began to significantly grow our market position in 2010 by dedicating 100% of production at the mill to fluff pulp following the conversion of a paper machine there. In subsequent years, we built our reputation for quality and reliability in global markets, as well as a national and global customer base. 12 DOMTAR 2016 ANNUAL REPORT The Plymouth mill’s success led to the strategic decision in late 2014 to convert the largest paper machine in our mill system to fluff pulp production. This major investment at our Ashdown mill demonstrates our confidence in the growth of the global fluff pulp market and our commitment to be a supplier of choice to existing and new customers. The new fluff line at Ashdown is one of the largest in the world and has the flexibility to produce either fluff pulp or papergrade pulp bales, depending on market demand. Our operational focus in 2017 is on ramping up production and qualifying product to meet the exacting standards of our growing customer base, with our own personal care division as qualifying customer. Longer term, we see great potential to grow our existing relationships and attract new global customers with a strategically-located and geographically diversified supply system. GROWING WITH OUR STRENGTHS


Domtar 2016 Annual Report
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