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Domtar inaugurates commercial lignin production

March 12, 2013

Plymouth Mill to produce bio-material with wide range of industrial
applications as petro-chemical alternative – the first of its kind in
over quarter century

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(NYSE: UFS) (TSX: UFS)

MONTREAL, March 12, 2013 /PRNewswire/ – Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced that it has successfully installed a
commercial-scale lignin separation plant at its Plymouth, North
Carolina mill, the first U.S. facility of its type in over 25 years. 
The production of BioChoice(TM) lignin began in February, with a targeted
rate of 75 tons a day, destined for a wide range of industrial
applications as a bio-based alternative to the use of petroleum and
other fossil fuels.

The successful installation of commercial-scale lignin removal capacity
at the Plymouth Mill is the culmination of a research and engineering
project launched by Domtar in 2010.  This project was further boosted
when the U.S. Department of Agriculture and the U.S. Department of
Energy awarded the company a grant through the Biomass Research and
Development Initiative. Domtar’s lignin operation sets a new path for
the industry and also marks the latest sustainability milestone for a
company that has long been recognized as an industry leader in forest
certification and environmental stewardship.

“Our vision is to be a global leader in fiber-based innovation,” said
Bruno Marcoccia, Domtar’s director of research and development. “A big
part of this is our focus on partnering with best-in class
collaborators to develop new products and markets for a wide portfolio
of initiatives, like BioChoice.”

“The possibilities for making a real difference in terms of offering
manufacturers a bio-based alternative to the use of petro-chemicals is
truly exciting,” said Hasan Jameel, a professor in North Carolina State
University’s Department of Forest Biomaterials. “This is a big win for
sustainability on two counts – Domtar improves the efficiency of its
pulp-making process, and at the same time the market gets a reliable,
high-quality source of this underused material with so much potential.”

A wide range of potential applications for BioChoice lignin exists,
including fuels, resins and thermoplastics.

For more information, please visit www.domtar.com.

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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 adult
incontinence 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 complete line of
incontinence care products marketed primarily under the Attends(®) brand name. Domtar owns and operates Ariva(®), an extensive network of strategically located paper and printing
supplies distribution facilities. In 2012, Domtar had sales of US$5.5
billion from nearly 50 countries. The Company employs approximately
9,300 people. To learn more, visit www.domtar.com.

SOURCE DOMTAR CORPORATION


Source: PR Newswire