Domtar to improve efficiency of Quebec mill

Jan. 10, 2011, Montreal – Domtar Corporation
will be implementing two capital projects to improve the energy efficiency of
its Windsor, Quebec, mill. The first will make the biomass boiler more energy
efficient so that it can burn more biomass and reduce the consumption of
natural gas. The second will reduce the amount of steam used by the paper
machines. The capital expenditures for these two projects will amount to
$24.8 million, which will be funded entirely by credits received under the
Canadian government's Pulp and Paper Green Transformation Program (PPGTP).

The two projects will reduce the Domtar
Windsor mill's consumption of natural gas by 17 million cubic metres/year
and its greenhouse gas emissions by more than 9%/year. The projects will be
completed by March 2012.

Domtar was allocated a total of $143
million for investments aimed at improving energy efficiency and environmental
performance under the PPGTP. Domtar owns and operates a total of four pulp and
paper mills in Canada, all eligible under this program.

Read more details in Pulp & Paper Canada: Domtar Windsor spends Green Transformation funds on biomass boiler