On January 10th, Sun Paper started up a new packaging production line PM 2 in Laos. As the 6th packaging paper machine that Voith supplied to Sun Paper, PM 2 started up 18 days ahead of schedule and is Sun Paper’s second paper machine outside of China. From stock on wire to paper on reel it took only 1 hour and 46 mins. The team has thus set up a new start-up record for this type of paper machine.

• Second Voith-supplied paper machine in Laos within one month
• Start-up 18 days ahead of schedule
• All six Voith-supplied packaging production lines put into operation
• New milestone for Sun Paper “Forest-pulp-paper integration” strategy

Voith supported Sun Paper’s fast expansion in capacity and high-quality development with the start-ups of PM 1 and PM 2 just within one month. The tight schedule was a challenge but due to the strong collaboration and close project execution among Voith and Sun Paper, both paper machines started up ahead of schedule. Sun Paper’s “Forest-pulp-paper integration” strategy implementation achieved a new milestone.

“Based on our experience of PM 1, our team from Voith and Sun Paper further optimized feather and parameters of the second machine,” says Aimin Zhang, Laos Project Director from Sun Paper. “Consequently, PM 2 started up 18 days earlier than planned and it took only 36 days from I/O checking to first roll-out. This success proves again the expertise and know-how of both teams, as well as the close collaboration. I believe that PM 2 will soon achieve the highest performance level. I would like to thank Voith for the great contribution.”

The Laos project is Sun Paper’s “Going Global” strategic expansion, which has already shown the company’s insight and competitiveness by taking advantage of the region’s rich forest resources, geographic location, and future tax privileges brought by the regional comprehensive economic partnership agreement. PM 1 and PM 2 have helped to increase the proportion of high-quality packaging paper, and the two efficient and reliable paper machines strengthened the cost competitiveness. The two machines are installed in the same workshop, while PM 1 is the right-hand machine, producing paper with basis weights of 140-250g/m2 and an annual output of 520,000 tons; PM 2 with left-hand machine direction is producing low-weight products with a range of 100-160g/m2 and an annual capacity of 480,000 tons.

The start-up of PM 2 also signifies that all packaging paper machines operating at Sun Paper are provided by Voith. Sun Paper partners with Voith from its first entry into the packaging paper business, co-worked on the structural optimization under supply-side reforms in China, and now, the overseas project witnessed the collaboration during Sun Paper’s global expansion. The development of Sun Paper’s packaging paper is a journey of innovation and also one in which Voith is always present to provide the best possible solutions and services to its customers.

About the Voith Group
The Voith Group is a global technology company. With its broad portfolio of systems, products, services and digital applications, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive. Founded in 1867, the company today has more than 20,000 employees, sales of € 4.2 billion and locations in over 60 countries worldwide and is thus one of the larger family-owned companies in Europe.

The Group Division Voith Paper is part of the Voith Group. As the full-line supplier to the paper industry, it provides the largest range of technologies, services and products on the market and offers paper manufacturers holistic solutions from a single source. The company’s continuous stream of innovations facilitates resource-conserving production and helps customers minimize their carbon footprint. With its leading automation products and digitalization solutions from the Papermaking 4.0 portfolio, Voith offers its customers state-of-the-art digital technologies to improve plant availability and efficiency for all sections of the production process.

Metsä Board, part of Metsä Group, aims at strengthening its position as Europe’s leading producer of folding boxboard and plans to increase its production capacity.

The company has started pre-engineering for increasing the annual production capacity of folding boxboard machine BM1 at the Husum mill in Sweden by approximately 200,000 tonnes. The pre-engineering phase includes also an evaluation of the mill port’s capacity for increased volumes of raw materials and finished goods.

The planned investment would further strengthen Husum BM1’s position as the biggest folding boxboard machine in Europe. The final investment decision is subject to the results of the pre-engineering phase. The readiness to make the final investment decision is expected to be achieved in the summer of 2021 and the ramp-up of the additional capacity would start in 2023.

 “We have experienced good growth in our safe and sustainable folding boxboards in recent years. The high utilization rate of our current production capacity is a limiting factor for future growth. In order to continue profitable growth together with our customers, we are now looking at a potential capacity expansion. Husum as an integrated site would be an efficient platform for further development of Metsä Board’s paperboard business,” says Mika Joukio, CEO of Metsä Board.

Metsä Board 

www.metsaboard.com 

Metsä Board is a leading European producer of premium fresh fibre paperboards and forerunner in sustainability. We produce premium lightweight folding boxboards, food service boards and white kraftliners for consumer goods packaging as well as retail-ready and food service applications. We work together with our customers on a global scale to innovate solutions for better consumer experiences with less environmental impact. The pure fresh fibres Metsä Board uses are a renewable resource, traceable to origin in sustainably managed northern forests. We aim for completely fossil free mills and raw materials by 2030.

The global sales network of Metsä Board supports customers worldwide, including brand owners, retailers, converters and merchants. In 2019, the company’s sales totalled EUR 1.9 billion, and it has approximately 2,400 employees. Metsä Board, part of Metsä Group, is listed on the Nasdaq Helsinki. 

ABB boosts portfolio with ACA Permi sensor, which provides online air permeability measurements and acts as early warning system for unwanted process changes

ABB has entered into a partnership with ACA Systems, the leading supplier of porosity sensors, to offer paper mill customers a proven technology that stabilizes the process to enable excellent roll quality when measuring online porosity. The single point ACA Permi sensor uses a continuous air flow method that is 50 to 100 times faster than other systems available on the market to reduce air permeance variations, enabling better product quality, optimized energy usage and reduced raw material costs.

The multiple advanced calibration features improve the accuracy of the measurements while also enabling faster grade changes, improving overall runnability. This accuracy means that the level of fines can be better controlled while monitoring the direct effect of refining, retention, broke addition and vacuum levels.

When stabilized air permeability is at the desired level, the roll is considered highest quality. In contrast to laboratory measurements that take 5 to 10 points from the produced roll, ACA Permi measures more than 10,000 points in real time and makes a sophisticated, statistical analysis on the quality of the roll.

Under the partnership, ABB will supply the user-friendly ACA Permi to customers as the porosity option within its own portfolio. It is designed to be used in paper mills with requirements for online porosity measurement as a standalone solution or as part of the quality control systems (QCS) package.

It serves ABB’s L&W installed base by providing a replacement for the soon-to-be obsolete Porolog while augmenting the current QCS offering with the industry-leading porosity measurement that is easily integrated into the QCS for data, display and control. When combined with QCS, it can leverage the ABB Ability™ Quality Management System with its System 800xA backbone. It also has potential to be installed and used with ABB’s remote support.

“Our customers have reported faster grade change times of between 15 percent and 50 percent when controlling the roll quality with ACA Permi. This is a major benefit for operators focused on minimizing production loss and maximizing return on investment, ” said Vesa Kukkamo, CEO of ACA Systems.

The sensor offers a wide measurement range that usually requires one single calibration, so there is typically no need to change parameters or physical parts for various grades. Plus, the automatic cleaning cycle and smart construction make for easy maintenance and installation. The measurement signal is also compatible with all mill-wide systems and cloud services.

“ACA was strategically chosen for its leadership position, attained through extensive expertise in this space, and abilities to provide continuous measurement and strong service capability. The ACA Permi delivers more accurate, faster measurement results and therefore a higher quality output, which we know is crucial for our customers,” said Ad de Brouwer, Product Manager at ABB.

ACA Permi’s unique measurement head design, tailored with special coatings for challenging applications such as decor paper, provides excellent contact with the web and eliminates the leakage of air, dust and other disturbances. Both vacuum and air blow methods are available, resulting in a very high correlation between the ACA Permi and any lab standard.

The sensor suits a wide range of paper grades, including sack paper, MG-kraft paper, cigarette paper, security paper, decor paper, photo base paper, thermal paper, carbonless paper, saturating paper and base paper before coating.

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 110,000 talented employees in over 100 countries. www.abb.com

ABB is a trusted partner and leading supplier to the pulp and paper industry, offering deep expertise and a comprehensive portfolio of integrated digital solutions, automation and electrification systems, industry-focused products and comprehensive services to help our customers optimize all phases of the papermaking process. We are committed to serving packaging, paper, tissue and pulp producers to help drive availability, performance, cost and quality improvements. Active worldwide, ABB has over 1000 pulp and paper professionals who serve customers in over 50 countries. www.abb.com/pulpandpaper

ACA Systems Oy , a privately-owned technology company founded 1986 in Polvijärvi Finland, is specialized in developing, manufacturing and selling high technology instrumentation for the paper, board and other industries globally.

Today we offer from manufacturers to finishing converters comprehensive services, high quality measuring equipment solutions as well as modern data handling platforms. Our heritage has been always to provide information that can lead to more stable processes and better product quality as well as production cost reduction. Our people are dedicated to support customers and develop new instrumentation based on the needs of the industry. www.aca.fi

Valmet will supply a new OptiConcept M container board making line with extensive packages of automation and services to Shanying Paper, Guangdong at its Zhaoqing mill in China. The new board making line (PM 53) will produce test liner grades and continue the expanding of Shanying Paper’s business in Guangdong area. The start-up of PM 53 is scheduled for the first quarter of 2022.

The order is included in Valmet's orders received of the fourth quarter 2020. The value of the order will not be disclosed.

The new order of PM 53 is following Valmet’s OptiConcept M board making line deliveries of PM 52 to the same site, which was announced in October 2020, and Shanying Huazhong PM 21 and PM 23, which have already been started up. In addition to these, Valmet has supplied six other board making lines to Shanying International.

“The board machines PM 52 and PM 53 will be built at a completely new site. Shanying Paper benefits from the fact that the machines will be sister machines as personnel training can be done at the same time, and the amount of for example spare parts and spare rolls can be optimized,” says Hannu Savonen, Sales Manager, Valmet.

Technical information about Valmet’s delivery

Valmet's delivery for PM 53 is quite similar to the delivery of PM 52, and it will include a high-speed container board making line from broke collection to a reel and a winder. OptiFlo Foudrinier headboxes, OptiFormer Multi forming section, OptiPress Center press section and OptiRun Single dying section are included to produce high-quality base board. These are  followed by an OptiSizer Film sizer, an OptiCalender Hard calender, and OptiReel Linear reel combined with transfer rails, an OptiCart Stream parent roll cart, and an OptiWin Drum two-drum winder. A wide scope of board machine process ventilation systems is included, too.

The wide automation package includes Valmet DNA automation system for process and drive controls as well as runnability and condition monitoring and Valmet IQ quality management solution. The delivery will also include comprehensive Valmet Paper Machine Clothing, spare parts and consumables packages.

The 9,300-mm-wide (wire) board machine will produce kraft top liner grades. The design speed of the machine will be 1,200 m/min and the daily capacity is approximately 1,500 tonnes.

Information about the customer Shanying Paper, Guangdong

Shanying Paper, Guangdong, founded in 2019, is part of Shanying International Holding, founded in 1957. The company has several packaging paper and newspaper production lines producing box board paper, high-strength fluting paper, card paper, newspaper and other products. The production lines use domestic and foreign recycled fibers.

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2019 were approximately EUR 3.5 billion. Our 14,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Read more www.valmet.com

Europap Tezol Kağit will boost capacity with a Toscotec-supplied AHEAD 2.2S tissue machine at its integrated production base in Mersin, Turkey. This is a repeat order for Toscotec who already supplied a TT SYD steel Yankee dryer installed on their PM1 in 2012. The new line is scheduled for start-up in mid-2022. 

The AHEAD 2.2S machine has a sheet trim width of 2,920 mm, a maximum operating speed of 2,100 mpm, and an annual production capacity of over 40,000 tons. It is equipped with TT NextPress with upgraded design, third-generation TT SYD, TT Reel-BulkyReel for optimal preservation of bulk and softness, and high efficiency TT Hood with automatic balancing system. 

The supply features the complete stock preparation system and Toscotec’s patented TT SAF^® (Short Approach Flow) equipped with a double dilution system to ensure electrical consumption reduction. The scope also includes Toscotec’s proprietary DCS system, electrification and controls, as well as dust and mist removal systems. Two OPTIMA slitter rewinders fitted with an automatic shaft puller complete the supply. Toscotec will provide a complete service package with detailed mill engineering, erection supervision, commissioning, training, and start-up assistance.  

Ersin Tezol, CEO of Europap Tezol Kağit, says, “Our production capacity expansion required the most advanced technology at a cost-attractive price. Toscotec’s technology was the best choice to meet the strict environmental requirements of our company and the high quality standards of our super-prime brands, especially for softness and hand feel.”

Matteo Giorgio Marrano, Toscotec’s sales manager, says, “This AHEAD 2.2S machine will allow Europap Tezol to achieve its target of production increase and prime quality. The configuration with TT NextPress and TT SYD of new generation and high recovery TT Hood aims to provide the highest possible level of energy efficiency on a tissue production line. Toscotec also strengthens its presence in the Turkish market, which is growing into a key market in the EMEA region.”  

About Europap Tezol Kağit San. Tic. Inc.
Established in 2004, Europap Tezol is a major manufacturer in the Turkish tissue market and it operates two tissue mills with integrated converting, in Torbali-Izmir and in Mersin-Tarsus (Turkey), with an annual production of 100,000 tons. Tezol distributes its branded products and AfH tissue, including wipes, napkin, toilet and towels, in Turkey, as well as Europe, the Middle East, Russia and Latin America. 

For further information, please contact:
Matteo Giorgio Marrano, Area Sales Manager, Tissue division, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Over the course of this year the Tissue market evolved significantly: the uncertainty of the cost of pulp, the high competitiveness of the market, and the upheavals created by the current pandemic opened up new challenges. The Körber Business Area Tissue has been able to meet the most demanding customer requirements in terms of speed, choice and technologically advanced solutions.

Oswaldo Cruz, Chief Executive Officer of the Körber Business Area Tissue comments: "Our strong investments in ready-for-delivery machines and in the patent for the production of biodegradable face masks were fundamentally important for the success of our customers this year. The prospects for 2021 are also good for the growth of paper for sanitary use by industrial sectors such as hotels, restaurants, and offices".

"We at Körber,” continues Oswaldo Cruz, “never stopped solving challenges for and with our customers during the pandemic. Our customers produce essential products such as toilet paper and kitchen towels and, in recent months, they needed to increase production output in a very short time. We were able to support them thanks also to the important investment in ready-for-delivery machines that we sold, installed, and made operational in a few months".

“In our industry we usually work on customized orders based on customer specifications, which is why some 12 months plus normally pass until installation” explains Cruz. “In spring this year we decided to prepare “not yet sold” lines, based on our most requested models with the aim to quickly respond to increasing customer demands. That paid off in our customers success and thus offered us new opportunities for growth.”

Another decisive aspect was the continued technological innovation: a technological upgrade was patented this summer. Customers of the Körber Business Area Tissue can now produce K.Protect Myfaceroll, a single-ply mask that is especially applicable for daily use in places such as airports, public transport, shopping centers, supermarkets, grocery stores, or workplaces – just to name a few. The patented machines can produce over 10 thousand facemasks per minute and are adaptable to the main "non-woven" materials including a particular bamboo-based material that is compostable with organic waste.

Through the combined use of the traditional surgical mask and the single-ply one, it is also possible to increase the protective efficacy of surgical masks by guaranteeing 99.8% filtration and an outside-facing surface that is always clean.

Körber Business Area Tissue

At Körber our ultimate goal is to empower our customers’ ongoing success. We are the only truly integrated and global provider of advanced solutions for the tissue business. We offer the industry’s most comprehensive portfolio of tissue technology to support customers across the entire value chain – from roll to fold, from converting to packaging. Our advanced, automated and easy-to-use integrated solutions are a fundamental asset to shape the success in tissue, take our customers operations to the next level and strengthen their overall financial performance, while optimizing their total cost of ownership.

www.koerber-tissue.com 

Körber

We are Körber – an international technology group with about 10,000 employees, more than 100 locations worldwide and a common goal: We turn entrepreneurial thinking into customer success and shape the technological change. In the Business Areas Digital, Pharma, Supply Chain, Tissue and Tobacco, we offer products, solutions and services that inspire. We act fast to customer needs, we execute ideas seamlessly, and with our innovations we create added value for our customers. In doing so, we are increasingly building on ecosystems that solve the challenges of today and tomorrow. Körber AG is the holding company of the Körber Group.

 https://www.koerber.com

Key appointments are at the heart of Futura’s initiative to strengthen its presence in North America, a market with many key customers, which already includes a significant proportion of Futura’s global references.

Joining the leadership team at Futura North America are Cristian Giuliani as General Manager and Kevin Barliament as VP of Sales. These talented professionals will strengthen Futura North America’s structure and help consolidate the company’s presence in this strategic market.

“Our presence in, and commitment to, North America are very strong, and these appointments underline our long-term strategy to support customers and build on this position of strength,” said Futura CEO and President of Futura North America, Piero Ceccon. “North American tissue producers have proved willing to take full advantage of the technological solutions we offer, which has given us the confidence to engage even more closely with this part of the world.”

Cristian Giuliani has many years of experience in the hygiene industry and a strong engineering and product development background: “I am aware of the high expectations that the Futura brand creates in this market and in the world of tissue in general,” said Giuliani. “From the efficiency and performance achieved through our innovative converting solutions, along with the advanced integrated packaging systems developed in partnership with Plusline, we can now offer unique, high-performance solutions.”

Kevin Barliament said:” With over 20 years of experience in the converting industry and capital projects, I have seen equipment and customer expectations go through a massive evolution.  This movement started with equipment to meet the new market demands and quickly evolved into creative new support tools for an improved customer experience.  Futura is a leader in technology of equipment and customer support mechanisms for the converting industry. I am excited to join the Futura Team and look forward to supporting the continued growth of our customers in the North American Market.”

The strengthening of Futura North America’s structure consolidates certain activities in this region, while the parent company retains its central role in production and services. It ensures global coverage and support for the market-leading quality of technology which has defined the company since its foundation.

The decrease in consumption caused by the Covid-19 pandemic continues to place strong pressure on prices. In combination with cost increases in paper production and transport this has continued to lead to unsustainable profitability levels, especially felt in our overseas markets.

Due to this Sappi is to further increase prices for the entire Fine Paper range by a minimum of US$ 50/ton as of February production and March shipments for all overseas markets.

The Sappi sales team will be in contact with its customers to discuss the detail and support the implementation.

About Sappi Sappi is a leading global provider of sustainable woodfibre products and solutions, in the fields of Dissolving pulp, Printing papers, Packaging and speciality papers, Casting and release papers, Biomaterials and Bio-energy. As a company that relies on renewable natural resources, sustainability is at our core. Sappi European mills hold chain of custody certifications under the Forest Stewardship Council™ (FSC™ C015022) and the Programme for the Endorsement of Forest Certification™ (PEFC/07-32-76) systems. Our papers are produced in mills accredited with ISO 9001, ISO 14001, ISO 50 001 and OHSAS 18001 certification. We have EMAS registration at 5 of our 10 mills in Europe.

Sappi Europe SA is a division of Sappi Limited (JSE), headquartered in Johannesburg, South Africa, with 12,500 employees and 19 production facilities on three continents in nine countries, 37 sales offices globally, and customers in over 150 countries around the world.

Learn more about Sappi at www.sappi.com

In close cooperation with its customer Jiangsu Bohui Paper Industry, international technology group ANDRITZ recently achieved a milestone in high-consistency (HC) refining by processing a peak capacity of 1,300 admt/d of local hardwood chips per day and achieving sustainable production of 1,150 admt/d at the mill in Dafeng, China.

ANDRITZ supplied two separate fiberlines with capacities of 1,500 admt/d and 750 admt/d, respectively, featuring the well-proven P-RC APMP (Pre-Conditioning Refiner Chemical Alkaline Peroxide Mechanical Pulp) technology for the new chemi-thermo-mechanical pulping system. With a total capacity of 2,250 admt/d, this system is the largest worldwide.

The world’s largest HC refiner – the ANDRITZ TX68 Photo Andritz

The world record was achieved with the ANDRITZ TX68, the world’s largest HC refiner, as part of the second P-RC APMP system despite a defined single-line capacity of 750 admt/d. The TX68 refiner with an advanced feeding system is the centerpiece of the process and the latest innovation by ANDRITZ in HC refining.

Chen Bo, Pulp Production Manager at Jiangsu Bohui Paper Industry, comments: “Aiming at more flexibility for our folding boxboard production, we adapted the system in close cooperation with the ANDRITZ experts and were finally able to achieve this impressive milestone. We are especially proud that we succeeded in obtaining the necessary system configurations despite several challenges due to the Covid-19 situation. ANDRITZ China provided excellent on-site support in parallel with ANDRITZ’s key experts in Europe using remote solutions.”

Jiangsu Bohui Paper Industry Co., Ltd. is a subsidiary of Shandong Bohui Paper Industrial Co., Ltd., a listed company established in 1994 focusing on the production of ivory board, culture paper, linerboard, paper for gypsum plasterboard, and market pulp for the papermaking industry.

ANDRITZ GROUP

International technology group ANDRITZ offers a broad portfolio of innovative plants, equipment, systems and services for the pulp and paper industry, the hydropower sector, the metals processing and forming industry, pumps, solid/liquid separation in the municipal and industrial sectors, as well as animal feed and biomass pelleting. The global product and service portfolio is rounded off with plants for power generation, recycling, the production of nonwovens and panelboard, as well as automation and digital solutions offered under the brand name of Metris. The publicly listed group today has around 27,800 employees and more than 280 locations in over 40 countries.

ANDRITZ PULP & PAPER

ANDRITZ Pulp & Paper provides equipment, systems, complete plants and services for the production of all types of pulp, paper, board and tissue. The technologies and services focus on maximum utilization of raw materials, increased production efficiency and sustainability as well as lower overall operating costs. Boilers for power production, flue gas cleaning plants, plants for the production of nonwovens and panelboard (MDF), as well as recycling and shredding solutions for various waste materials also form a part of this business area.

Domtar Corporation (NYSE: UFS) (TSX: UFS) has just announced that it has entered into a definitive agreement to sell its Personal Care business to American Industrial Partners (AIP) for $920 million.

(All financial information is in U.S. dollars, unless otherwise noted).

The sale of Domtar’s Personal Care business represents the culmination of a process announced on August 7, 2020, during which the Company undertook a comprehensive strategic review of value-creating alternatives for the business. With this sale, Domtar is reinforcing its focus on building an industry-leading Paper, Pulp and Packaging company to deliver long-term shareholder value.

• Reinforces the Company’s focus on remaining an industry-leading Paper and Pulp company
• Represents the next step of strategic transformation on building a large, value-adding Packaging business
• Proceeds will be used to reduce debt by $600 million and repurchase $300 million in shares

“This transaction represents a milestone in Domtar’s ongoing portfolio transformation and further advances our strategic initiatives that will position Domtar for a sustainable and successful future,” said John D. Williams, President and Chief Executive Officer of Domtar. “We conducted a thorough review of strategic alternatives for Personal Care and believe the sale maximizes value to Domtar shareholders by allowing us to strengthen our balance sheet, enhance liquidity and buy back shares. The robust interest received reflects the excellent work by our team to improve profitability, gain new customers and enhance the operating structure and cost profile of the business. We are confident that AIP is the right owner to advance the business and look forward to working with them to execute a smooth and successful transition for the customers and employees of Personal Care.”

Mr. Williams continued, “The sale is an important component of our strategic plan and will provide us with additional capital and resources to strengthen and invest in the future of Domtar, leading to a more focused business portfolio. We are making solid progress with the conversion of the Kingsport, Tennessee mill, and are excited about the prospects for building a large, value-added packaging business. We expect construction to officially begin at Kingsport in the second quarter of 2021, setting the stage for the completion of North America’s premier lightweight containerboard facility, with the ability to produce and market approximately 600,000 tons of high-quality recycled linerboard and corrugated medium, by the end of 2022.”

BUILDING INDUSTRY-LEADING PAPER, PULP AND PACKAGING COMPANY

Domtar is executing on a clear plan to create long-term shareholder value by refocusing its portfolio around Paper, Pulp and Packaging. Domtar has begun to execute its strategic plan to enter the containerboard market with highly competitive assets and a differentiated go-to-market strategy. The Kingsport conversion provides the Company with a strategic entry point to build an up to 2.5 million ton business and become a long-term strategic supplier to the packaging industry.

Domtar has developed plans to build containerboard into a significant revenue contributor over time, while maintaining secure and stable cash flow through its industry-leading Paper and Pulp businesses. In Paper, Domtar has a leading market position in North America with well invested, low cost paper mills. Paper has generated attractive returns even in the most challenging environments, and Domtar expects it will remain a reliable and highly cash generative business in the coming years. In Pulp, Domtar will focus on segments with the highest growth profiles, including the hygiene, tissue and towel markets, and has the opportunity to further enhance its performance through strategic investments.

USE OF PROCEEDS

Domtar is committed to maintaining a resilient balance sheet and returning meaningful capital to shareholders. With this sale, the Company plans to use proceeds generated to:

Pay Down Debt: Domtar expects to reduce debt by approximately $600 million. Domtar’s strong balance sheet and liquidity will position the Company for resiliency and growth.

Repurchase Shares: Domtar expects to repurchase approximately $300 million in shares through an accelerated share repurchase program and open market repurchases.

TIMING AND APPROVALS

The transaction is subject to receipt of regulatory approvals and other customary closing conditions and is expected to close by the end of the first quarter 2021.

ADVISORS

Morgan Stanley & Co. LLC is acting as financial advisor and Debevoise & Plimpton LLP is acting as legal advisor to Domtar. Deutsche Bank Securities Inc. and Barclays are acting as financial advisors and Ropes & Gray LLP and Baker Botts LLP are acting as legal advisors to AIP.

About Domtar 

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 8,800 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.2 billion, and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.

About American Industrial Partners 

American Industrial Partners is an operationally-oriented middle market private equity firm that is distinctively focused on buying and improving industrial businesses with operations in the United States or Canada. The AIP team has deep roots in the industrial economy and has been active in private equity investing since 1989. AIP has completed over 100 platform and add-on acquisitions and invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $300 million to $1 billion+.