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Domtar 2016 Annual Report

REVENUE DRIVERS PAPERGRADE, FLUFF AND SPECIALTY PULP OVERVIEW We are a large pulp manufacturer with more than 60 years of global industry knowledge, a talented team of experts and an extensive product mix. Our high-quality papergrade, fluff and specialty pulps are sold to customers in North America, China, Japan, Southeast Asia, Europe, the Middle East and North Africa. Our papergrade pulp is essential for manufacturing everyday consumer products such as bathroom and facial tissue, as well as paper towels, all of which are growing markets. Domtar Lighthouse® fluff pulp is used in the absorbent core of personal care products such as infant diapers, adult incontinence products, feminine hygiene products and airlaid non-wovens. It is also used in absorbent toweling, and other more specialized applications. Our specialty pulp customers produce a wide variety of products ranging from specialty and packaging papers to electrical insulating papers and building products. PRIORITIES The global pulp market continues to experience modest demand growth. We aim to grow in the towel and tissue segment, as well as in hygiene products with multinational consumer goods companies. We are also actively adding specialty pulps to our offering to address niche markets. With the ramp-up of the new machine at our Ashdown mill during 2017, we will have the flexibility to increase production of fluff pulp and papergrade pulp, depending on demand in their respective markets. This new capacity also makes us a more reliable supplier for major customers by adding a second manufacturing location for fluff pulp to our mill network. PULP AND PAPER SEGMENT MARKET PULP 4 DOMTAR 2016 ANNUAL REPORT Domtar Lighthouse® fluff pulp is made with loblolly pine from the southeastern U.S., which produces long, bulky fibers ideally suited for making highly absorbent products that effectively distribute liquids and provide high pad integrity.


Domtar 2016 Annual Report
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