Ressources 2013 Q4 eng

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The magazine for Domtar employees and retirees > Q4 > 2013

EarthChoice Ambassadors

walk the talk


Page 2 > Q4 2013 > Resources > Domtar

In this issue

Resources is Domtar’s corporate magazine, bringing stories of agility, caring and innovation to employees and retirees. The magazine is published quarterly with a print circulation of 13,700 copies. Resources is also available on Canopy, the corporate intranet. Deadline for the next issue: January 24, 2014

PUBLISHER Pascal Bossé EXECUTIVE EDITOR Richard Descarries EDITORIAL ASSISTANTS Michèle Benoit Audrey Haustant Bérangère Parry CONTRIBUTORS Dan Allard, Nathalie Bazin, Allan Bohn, Amber Bowen, Joe Boyd, Amy Burns, Vanécia Carr, Providence Cloutier, Rénald Côté, Anna Denslow, Serge Goyette, Alison Graf, Susan Hadaway, Allen Hudson, Ginny Johnson, Todd Kirsch, Stuart Lister, Paul Mayer, Stefan Nowicki, Bob Peterson, Daniel Shakibaian, Bonny Skene, Gary So, Heather Alverson Stowe, Cristen Taylor, Craig Timm, Craig Van Asten and Tammy Waters

EarthChoice Ambassadors walk the talk > Page 7

COVER STORY > On our cover, Windsor employees and their families showed their caring by helping to plant 300 trees at Parc de la rivère Watopéka, located across the river from the Windsor Mill. Pictured above, Ginny Corley, Maintenance Administrative Assistant at the Kingsport Mill, clears debris at Borden Park.

DESIGN Pelican

To request copies to be delivered to a specific site or to notify of changes to mailing addresses, please direct correspondence to: Domtar Attn: Resources Magazine 395 de Maisonneuve Blvd. West Montreal, Quebec, Canada H3A 1L6 resources@domtar.com

Resources is printed on 70 lb. FSC® certified Cougar, a premium paper and member of the Domtar EarthChoice® family, a full line of socially and environmentally responsible papers. This paper contains 10% post consumer recycled fiber and fiber from well-managed forests, independently certified accordingto the standards of the Forest Stewardship Council.

Legal Deposit: Bibliothèque nationale du Québec December 2013 Publication Mail: 40064869 Printed in Canada

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DOMTAR WINS TWO 2013 AF&PA SUSTAINABILITY AWARDS > Our commitment recognized before top industry executives.

TOP AWARDS FOR MARKETING PROMOTIONS > Domtar participated in two awards banquets at Print 13.

WORKING TOGETHER TO BE READY AT WINDSOR > A well-prepared response team can make all the difference.

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> Page 10 BUILDING A SUSTAINABLE BUSINESS IN CHINA > Domtar’s converting and distribution operation is up and running in China.

OUR RELIABILITY JOURNEY > New tools, processes and procedures are all part of the Hawesville Mill’s reliability journey.

REACHING OUT TO STUDENTS THROUGH READING > The Marlboro Mill embarked on a challenge to encourage youth to read more books.

> CORRECTIONS MISTAKEN IDENTITY Our apologies to Karen Carson, Quality Manager, Western Region, right, for publishing someone else’s picture with her story on the Nekoosa Mill’s quality self-assessment in Resources > Q3 > 2013.

WRONG DATE Domtar acquired E.B. Eddy Forest Products Ltd. in 1998. We erroneously reported that date as 1988 in our story about Port Huron Mill’s 125th anniversary in Resources > Q3 > 2013.


Domtar > Resources > Q4 2013 > Page 3

Message from John D. Williams

DEVELOPING THE NEXT GENERATION OF EMPLOYEES A

S BUSINESS-CRITICAL ISSUES GO, THERE’S PERHAPS NO BIGGER ONE THAN THE QUESTION OF WORKFORCE RENEWAL.

The so-called “silver tsunami” is already washing up on Domtar’s shores, and will continue to do so into the near and mid-term future. The demographic bulge of employees approaching retirement sees some of our mills grappling with a significant staffing turnover over the course of a decade.

facility, the Regional Center for Advanced Manufacturing. They are now three years into this cross-sector collaboration that is widely hailed as model for how the North American manufacturing industry can pro-actively and successfully address its workforce renewal needs.

Boil it down to the mill level and you can get a good picture of the impact an aging workforce (myself included!) has on the business. Hiring two or three new employees per year in a mill with 400 workers is very manageable; hiring 3040 in the same timeframe is far more challenging. Our current resources, process and systems are not designed to hire, onboard and develop that volume of recruits. And where back in the day we had the luxury of two to three years of on-thejob, learn-by-osmosis training, nowadays that window has been compressed to just six months.

The partnership approach is also in evidence in our Wisconsin mills that were among the first in our system to come face to face with the retiree gap. They innovated to fund on-site training partnerships with local educational institutions that help bridge the new, tightened timelines for worker training and development.

So we have by necessity needed to invest in training and development partnerships with technical colleges and universities in our host communities to ensure that we are actively building a workforce for the 21st century. Look to the example of Tennessee, where our Kingsport Mill has partnered with Eastman, the other major employer in the region, and the local trade college to create an on-site technical training

We’ve also invested in our people at the corporate level by bringing top Human Resources talent in-house to help us design and implement both on-line and on-site training and development systems. It is this combination of new ideas, new energy and new tools that will help us effectively meet the operational, safety and employee development challenges of building the next generation of workers in the field of wood fiber transformation. You hear a lot about innovation in our industry, but it’s most often focused on processes and machines, not people. When it comes to aging populations, whether it creates a workforce renewal challenge or a market opportunity for absorbent hygiene products, at Domtar we are truly living through, and more importantly, innovating through, a demographic shift with real business implications. This dual challenge and opportunity is really where our collective Agility, Caring and Innovation will make all the difference. <


Page 4 > Q4 2013 > Resources > Domtar

Financial news

IMPROVED PULP PRODUCTIVITY AND CONTINUED GROWTH IN PERSONAL CARE EARNINGS IN Q3

$41 MILLION

EARNINGS BEFORE ITEMS D

omtar reported net earnings of $27 million ($0.82 per share) for the third quarter of 2013 compared to a net loss of $46 million ($1.38 per share) for the second quarter of 2013 and net earnings of $66 million ($1.84 per share) for the third quarter of 2012. Sales for the third quarter of 2013 were $1,375 million. Excluding items listed in the earnings press release, the Company had earnings before items of $41 million ($1.25 per share) for the third quarter of 2013 compared to earnings before items of $16 million ($0.48 per share) for the second quarter of 2013 and earnings before items of $67 million ($1.87 per share) for the third quarter of 2012.

PAPER PRICE INCREASE ANNOUNCED to look for opportunities to further improve our output. Additionally, closing the sale of the Ariva U.S. business marked further progress in our transformation as we work to drive enhanced value for our shareholders.’’ Mr. Williams added, “Our personal care business continues its earnings progression with the ongoing integration of the recent AHP acquisition. While third quarter results were negatively impacted by an inventory adjustment at a large retail customer, we are enthusiastic about the long-term prospects for personal care and remain on track to deliver more than $200 million of EBITDA by 2017 with our existing platform.”

LIQUIDITY AND CAPITAL ‘‘Our third quarter results were driven by improved productivity in our pulp business and continued growth in our personal care business,’’ said John D. Williams, President and Chief Executive Officer. ‘‘Pulp and paper plays a vital role as the cash-generation platform in our journey to expand into higher-growth opportunities, and we are focused on running the business as efficiently as possible to ensure that we continue to extract maximum value from our assets. During the quarter, we finished the reconfiguration of our Kamloops pulp mill following the closure of a pulp line and a recovery boiler, and we continue

Cash flow provided from operating activities amounted to $287 million and capital expenditures were $180 million, resulting in free cash flow of $107 million for the first nine months of 2013. Domtar’s net debt-to-total capitalization ratio stood at 26% at September 30, 2013 compared to 16% at December 31, 2012. Domtar returned a total of $233 million to its shareholders through a combination of dividends and share buybacks in the first nine months of 2013. Under its stock repurchase program, Domtar repurchased a total of

$107 MILLION FREE CASH FLOW YEAR-TO-DATE

533,327 shares of common stock at an average price of $68.85 in the third quarter of 2013, and a total of 11,170,506 shares of common stock at an average price of $78.48 since the implementation of the program in May 2010. At the end of the third quarter of 2013, Domtar had $121 million remaining under this program.

OUTLOOK Our pulp business should benefit from accelerating momentum in global demand, notably in China. The recently announced price increases for several paper grades are expected to positively impact results towards the end of the quarter. We expect higher input costs due to higher usage in the winter months and we should see lower paper sales volumes in the fourth quarter due to seasonality. Looking out to 2014, we should continue to benefit from the recently announced paper price increases and our personal care business will continue to see earnings growth. <

CHECK ON DOMTAR’S STOCK IN REAL TIME DOMTAR CORPORATION (UFS)


Domtar > Resources > Q4 2013 > Page 5

Financial news

An industry transitioning to growth DANIEL SHAKIBAIAN > Intern, Investor Relations Domtar House

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or more than a decade, uncoated freesheet has been in secular decline. As advances in technology continue to create new substitutes for paper, paper manufacturers have had no choice but to adapt to unfavorable market conditions. Domtar has chosen to offset the decline in demand for uncoated freesheet by investing in the manufacturing and distribution of personal care products, specifically baby diapers and adult incontinence products. Domtar recently signed a definitive agreement to acquire Spanish diaper-maker Indas Laboratories, its fifth acquisition in the personal care space in the last three years. Furthermore, innovation is one of our three core values and Domtar has demonstrated its commitment to innovation through CelluForce, a joint venture with FPInnovations, the fast pyrolysis technology currently being developed at our Dryden mill and the LignoBoost project at our Plymouth mill. However, Domtar isn’t the only paper manufacturer that has had to find ways to offset the decline in their core business. International Paper has focused on the growing packaging

DOMTAR ISN’T THE ONLY PAPER MANUFACTURER THAT HAS HAD TO FIND WAYS TO OFFSET THE DECLINE IN THEIR CORE BUSINESS.

market with the acquisition of the Weyerhaeuser packaging assets, followed by the acquisition of Temple Inland in 2012. It’s also expanding into emerging markets such as China, Brazil and India. Glatfelter has been investing in their composite fibers business, growing at a compounded annual rate of 10%, and recently acquired Dresden Paper, the leading global supplier of nonwoven wallpaper base materials. In Europe, UPM-Kymmene is offsetting decline of its paper business through growth in pulp, label materials, energy, and by increasing its footprint in emerging markets. Of note, UPM built the world’s first biorefinery producing wood-based biodiesel in 2012. They have also been tremendously active in expanding their paper and label materials businesses in China.

Changing dynamics in a number of end markets have meant that mills are also looking at extending the life of their existing equipment and capitalizing on higher value products, especially in growth areas such as specialty pulps, tissue and packaging. In all, since 2010, a total of three million short tons of pulp, paper, and board have been converted at mills in the US and Canada, and four conversions are currently scheduled for 2014. At least two conversions to tissue include ST Paper on a former International Paper paper machine in Virginia and a planned conversion of an uncoated freesheet machine by Cascades at Boise’s mill in Oregon. Dissolving pulp conversions included an upgrade by Buckeye (now Georgia-Pacific), and two conversions by Sappi in Minnesota and Rayonier in Georgia. While the road to offsetting declines in core markets has been vastly different for all organizations, each has recognized that changing demand dynamics needs to be addressed. Domtar has said that it hopes to obtain $300-$500 million in EBITDA from new businesses, and after a string of acquisitions in the personal care space, it appears that it is on track. <


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Corporate

My Knowledge Tree has been planted PAUL MAYER > Manager – Internal Communications Fort Mill Operations Center

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e are pleased to announce that Domtar’s new Learning Performance Center, My Knowledge Tree, is coming to you in early 2014. At Domtar, it is in our fiber to be caring. We care about your development and are committed to providing you with the resources needed to achieve your potential. My Knowledge Tree is a learning and development resource that will provide you with online training courses (over 1,200 courses), books, videos, job aids, whitepapers, and industry-recognized professional certifications – all in multiple languages and available to you 24 hours a day, 7 days a week.

“When our employees gave us feedback in the Great Place to Work survey, they told us that we had some gaps in how we develop our people. We wanted to change that. I’m excited that we’re launching My Knowledge Tree because it will provide all of our employees with development resources – 24/7. As our business changes it will become even more important for our employees to be prepared for new challenges. My Knowledge Tree is an investment in our people – and in our continued success as a company,” said Lisa Marcuz, VP, Global Talent Management. My Knowledge Tree will help you build your development plans to enhance and strengthen performance. Whether you’re trying to answer a question, learn a new skill, or develop professionally, My Knowledge Tree lets you quickly locate learning content aligned to your

development plans. Find the right resources to create your customized plan and experience a performance learning platform that truly puts your needs front and center, all at your fingertips! My Knowledge Tree has been planted and is growing strong. It will be ready to bloom in early 2014. Stay tuned for more information over the next few months.<

Domtar wins two 2013 AF&PA sustainability awards D

omtar was recognized for its commitment to environmental and safety excellence before top industry executives at the American Forest & Paper Association’s (AF&PA) 2013 annual meeting held in Charleston, SC, in early November. These are designed to recognize exemplary sustainability programs and initiatives, and are given based on the merit of entries received across multiple categories. We received the AF&PA’s 2013 safety award for our hazard mapping program at the Ashdown Mill and the sustainable forest management award for the FSC certification program with southern timberland owners. Only five companies received awards, and we are the only company to win two. “Domtar’s approach to safety at the individual level is part of their overall culture, allowing them to repeatedly achieve high safety standards,” said AF&PA President and CEO Donna Harman. “Domtar’s dedication to achieving certification for private forestland owners in the four-southern-state area speaks to their forwardthinking approach to collaboration between

the forest products industry and third-party sustainable forest management certification groups.” The Hazardous Mapping Program at the Ashdown Mill began in 2011 and involved specialized training, compiling information, developing electronic symbols and systematic area mapping. Since the program’s implementation, 324 hazards have been eliminated. Ashdown achieved a 1.07 recordable incident rate in 2012, making it the best year for safety in its 45-year history. Domtar formed the Four States Timberland Owners Association in 2010 to educate landowners and managers on how to obtain sustainable forest management certification. Domtar and 55 individual landowners representing more than 70,000 acres of forestland achieved certification in November 2012. The Association is aiming to double the amount of certified acreage in 2013. “This sustainability recognition for our Ashdown Mill is something we can all share, as it speaks

John D. Williams and Vice President of Sustainability David Struhs with Domtar’s two awards to the values of agility, caring and innovation upon which we are building a business for the long haul,” noted John D. Williams, President and CEO. “The Ashdown Mill’s hazard mapping and support for group FSC certification are perfect examples of how transformational sustainability at Domtar is truly a grassroots, collaborative effort.” <


Domtar > Resources > Q4 2013 > Page 7

Cover story

Kingsport employees, family and friends at Borden Park in Kingsport, TN

EARTHCHOICE AMBASSADORS

WALK THE TALK HEATHER ALVERSON STOWE > Sustainable Engagement and Training Manager Fort Mill Operations Center

sustainable work habits and leading by example, this group strives to share Domtar’s sustainability message throughout our organization.

WINDSOR

his fall, from Montreal to Windsor, QC, Kingsport, TN, and Fort Mill, SC, Domtar’s EarthChoice Ambassadors (ECAs) have been tirelessly working to fulfill their mission in their communities.

On October 5, over 40 Domtar employees and their families joined Windsor Mayor Sylvie Bureau and councilmen David Fournier and Gaétan Graveline to work at Parc de la rivière Watopéka, just across the river from the Windsor Mill.

Our EarthChoice Ambassadors are committed to promoting sustainable business practices focusing on our Customers, Employees, Company and Community. By identifying and sharing innovative methods, educating and encouraging

André Gravel, a forest engineer and Fiber Supply Manager at the Windsor Mill, led the group in planting 300 trees. He was on site early marking locations, putting up guide lines and giving directions. Even the youngest conservationists were

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able to help plant. Among other activities, the group also built picnic tables and bird houses.

“I was very pleased by the commitment of the Windsor EarthChoice Ambassadors and all volunteers who took part in embellishing the community,’’ said Eric Ashby, Windsor Mill Manager. ‘‘They are truly showing the core values of Domtar.” “By this activity, Domtar showed they care about the Windsor community,’’ commented Sylvie Bureau, Windsor Mayor. ‘‘We were pleased to join Domtar employees and be part of this accomplishment.” Cont’d >


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Cover story

EARTHCHOICE AMBASS MONTREAL In September, the Montreal EarthChoice Ambassadors focused their efforts on water conservation and efficiencies. This subject is one of the key performance indicators featured in our 2012 Sustainable Growth Report. In partnership with the World Wildlife Fund (WWF), the Montreal ECAs participated in the Great Canadian Shoreline Cleanup, removing shoreline litter to help create healthy waters for everyone, including the wildlife and communities that depend on them. Some 25 Domtar employees joined Canadians from coast to coast to clean up shoreline litter, making it the largest citizenbased cleanup in Canada! “It was a beautiful day on Île-Ste-Hélène in Montreal, where we cleaned up the shoreline and picked up lots of garbage,” said Nicole Brisse, HR Shared Services Project Manager. Sandra de Montigny, Finance Project Controller and ECA Captain in Montreal, said “It’s amazing how once your children pick up garbage with their bare hands, they really understand what it does to our planet to throw something on the ground. My children have not so much as dropped a gum wrapper on the ground since that day. What an amazing way to teach them a life lesson of sustainability!”

A group of 25 Montreal employees participated in the Great Canadian Shoreline Cleanup.

The Montreal Ambassadors preceded their cleanup day with an inside/outside lunch-andlearn session on water efficiencies. Patrick Cartier, a forester from our Windsor Mill, spoke to employees on forest and water conservation at Domtar. The WWF’s Marie-Claude Lemieux spoke about water conservation and the Great Canadian Shoreline Cleanup.

WINDSOR AND KINGSPORT In October, in partnership with the Student Conservation Association (SCA), employees at our Windsor, QC, and Kingsport, TN, manufacturing facilities worked in local parks on conservation and restoration activities. SCA’s mission is to build the next generation of conservation leaders and inspire lifelong stewardship of our environment and communities by engaging young people in hands-on service to the land. “This collaboration aligns with Domtar’s sustainability commitments and also supports

our employees making positive impacts on our communities,” said Pascal Bosse, Vice-President, Corporate Communications and Investor Relations. Pascal manages the community investment team that formed the partnership with SCA in 2012. “Our partnership with Domtar is a testament to the on-going commitment to conservation that makes Domtar a leader in your industry,” said Peter Bokolas, Director of Corporate Relations for SCA.

KINGSPORT On October 12, 48 Kingsport, TN, employees and their families and friends came together for restoration work at Borden Park, less than two miles from the Kingsport manufacturing facility. Domtar has been a long-time supporter of Borden Park, which proudly houses the Domtar Arboretum. When ECA was researching project locations, Borden Park was the one most in need of some work. Projects included clearing debris from over 40 trees that had recently been pruned. Volunteers dragged branch after branch to the

OUR EARTHCHOICE AMBASSADORS ARE COMMITTED TO PROMOTING SUSTAINABLE BUSINESS PRACTICES FOCUSING ON OUR CUSTOMERS, EMPLOYEES, COMPANY AND COMMUNITY. BY IDENTIFYING AND SHARING INNOVATIVE METHODS, EDUCATING AND ENCOURAGING SUSTAINABLE WORK HABITS AND LEADING BY EXAMPLE, THIS GROUP STRIVES TO SHARE DOMTAR’S SUSTAINABILITY MESSAGE THROUGHOUT OUR ORGANIZATION. Sandra de Montigny (Domtar House) and daughter Jasmine Gadbois planting a spruce tree.


Domtar > Resources > Q4 2013 > Page 9

Cover story

SADORS WALK THE TALK outer perimeter of the park for city employees to grind and use for mulch – some of which ended up at our mill as biomass fuel for the boiler. “There is no way we could have gotten this much work done before winter and we are so grateful for Domtar’s help,” said Tom Segelhorst, Alderman for the city of Kingsport and Health and Safety Manager at Domtar. Pavilions and playground equipment that had lost their luster were repainted, and mulch was spread on the four playgrounds at the park. Trash was picked up and six trees were planted, including Japanese maple. “We are all so busy it’s easy to forget the impact that can be made in just a few hours of effort,” remarked Bill MacPherson, Kingsport Mill Manager. “I am so proud of Domtar for providing opportunities like this for my family to learn about serving our community.”

FORT MILL On October 19, a damp and drizzly Saturday morning, 45 employees from our Fort Mill Operations Center participated in a collaborative EarthChoice Ambassador and Fort Mill Wellness Team volunteer project for the Anne Springs Close (ASC) Greenway. The ASC Greenway is a 2,100-acre nature preserve dedicated to the public. It serves as a natural

Kingsport Mill Manager Bill MacPherson’s son and daughter, Murray and Adelaide

buffer from urban development and is a place for countless activities such as hiking, mountain biking, horseback riding, kayaking and more. The ASC Greenway bus shuttled volunteers from our offices, which are a little less than a mile from the park. Park services staff armed employees with a variety of tools and instructions and the team began creating a new trail for hikers and bikers. The children in the group participated by planting native plants in a fallen hollow tree to help beautify and close off a section of old, unsafe trail. An outstanding and unexpected 120 yards of trail were created and opened to the public that day. The Domtar volunteers proudly lined the trail and applauded the first biker to try it out. At the end of the day the entire group walked the trail to see what had been accomplished in just a few hours. “Thank you for the best Saturday morning I have spent in a long time,” enthused Jean Reed, Executive Assistant.

DOMTAR’S COMMITMENT Domtar’s 2012 Sustainable Growth Report tells us that “we are committed to contribute meaningfully to (community) development – both in prosperous times and when the economy is less than thriving. We are partners in every sense of the word, because our achievements and long-term prospects are inextricably linked.” As a testament to that, ten of the 35 key performance indicators listed in the report specifically focus on Domtar’s employees and communities. Your EarthChoice Ambassadors consider these indicators when they plan activities and educational opportunities. If you are interested in becoming an EarthChoice Ambassador or would like to start a chapter at your facility, please contact Heather Stowe at heather.stowe@domtar.com. <

This dedicated group not only enjoyed the satisfaction of giving back to the community, but also gained 10,000 extra Fit points from the Wellness team for being active. What a great embodiment of Domtar values – caring for our community, collaborating internally and working towards a vision of engagement that benefits everyone.

Fort Mill employees and their families getting ready to work at the Anne Springs Close Greenway in Fort Mill.

Malary Grace McGee, daughter of Goldie McGee (Fort Mill), and an ASCG employee find new uses for a hollowed-out log.


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Papers


Domtar > Resources > Q4 2013 > Page 11

Papers

Building a sustainable business in CHINA GARY SO > President and Managing Director Domtar China

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hich country has had a high single- to double-digit year-over-year growth in Gross Domestic Product (GDP) over the last 10 years? Which country has had a compound average growth rate in commercial printing and packaging paper consumption of over 7% over the last seven years? If you guessed China, you are right! In 2009 Domtar initiated a project that began with an in-depth study of the Chinese paper market. This analysis led to the conclusion that our company should enter this market with a combined model of converting and buy-andresale services, leveraging the experience of our converting group and paper sales and distribution in North America. As a result of this study and the approval by our Board of Directors, the China project team was set up and the business startup process was launched in 2011. Guangzhou, the provincial capital of Guangdong province, one the most advanced areas of China in terms of GDP growth and paper consumption, was chosen as home base. Domtar Paper Co. Ltd. (Domtar China) was officially granted its license in 2011 and fully operational in the second quarter of 2012.

COMPETITIVE MARKET Despite the high growth rate in paper consumption, China is no less competitive than other markets. Therefore, the right strategy and financial support are required to position Domtar China as a premier service provider in the converting and buy-and-resale market in southern China. The phase one objective of getting operations underway has been achieved through the efforts of a competent team of people from Shanghai, Shenzhen, Guangzhou, Hong Kong and North America. Since the third quarter of 2012, we’re in phase two, growing the business according to our blueprint. Entering a new market is challenging. We need a good understanding of the market and the ability to adapt to the local business environment. It’s not an easy process, but thanks to the effort of the team and corporate support, we’ve built a solid foundation for the China business while upholding Domtar’s values of Agility, Caring and Innovation.

FLEXIBLE EQUIPMENT In order to better position Domtar China in a unique and defensive position, we brought in one of the most flexible Milltex sheeters for the converting work and spent hundreds of hours training the team to exceed the service standard average players deliver. We have

achieved a remarkable track record to date: under 2.5% controllable waste, 99% OTD and zero recordables in terms of safety incidents. Inventory turns have been improved to 3X since early this year. We also obtained FSC certification. With the foundation now built the next challenge is to grow the business to a sustainable level. We have recruited 14 sales representatives, but most of them have less than six months of service with Domtar China. Training has been a top priority to bring them up to speed.

EXPAND PRODUCT BREADTH In terms of our market offering, we started with a narrow range of core products. We need to double or triple the product breadth to reach sales targets and achieve a more stable margin performance. We have built a strong bridge between Domtar corporate and China operations and have managed a good balance between corporate control and local flexibility. Being open-minded is the key to achieving this calibration. Moving forward, we still have a long road to get us where we want to be. Being prudent, riskconservative, but also flexible and adaptive, are crucial to success. <


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Papers

Speaking about China STUART LISTER > Manager, Corporate Communications & Public Affairs Domtar House

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ore than two years ago Domtar announced the opening of a paper converting, sales and distribution business in China, the company’s first investment in Asia. Our President and CEO John D. Williams spoke with Stuart Lister about the rationale for this move and the approach Domtar is taking towards penetrating the Chinese market.

Resources: Why did Domtar decide to enter the Chinese market with a startup converting and distribution operation? JDW: Many things entered the equation, among them the fact that to succeed in China, we needed to have an eye on the long game. We sell a significant amount of our pulp to Chinese buyers every year, but building a presence on the ground is an entirely different proposition. Learning a new market half a world away takes time and capital. Our game plan in China is designed so that we do not over-extend ourselves as we establish roots in the country.

Resources: Why is Domtar investing in China? JDW: With our industry in secular decline in North America, it makes sense for us to try our hand in the world’s fastest growing paper market.

So how best to do this? Well, the first thing was to pick the right niche, and we decided on paper converting and sales in southern mainland Guangdong province. This is a highly urbanized region and home to the highest concentration of commercial printers. Next, we needed to scale up in a way that positioned us to reap the most benefit while learning our way into the market. Resources: How are we doing so far?

Guangzhou, the provincial capital of Guangdong province, is one the most advanced areas of China in terms of GDP growth and paper consumption.

JDW: I’m pleased to observe that since starting from scratch in 2011, by mid-2012 we’d built a 200,000 square-foot facility with an operational folio machine that is producing top-quality sheets. The result is that we have been able to effectively introduce Domtar into the local business fabric in relatively short order.

Key in this regard was hiring an almost entirely Chinese workforce and management team that currently numbers 60 people, instead of staffing up with expatriates from the US and Canada, as some companies might have done in similar circumstances. Resources: Do Domtar’s values matter in China? JDW: Our values of Agility, Caring and Innovation are just as resonant in Asia as in North America. Specifically with regard to workplace safety, our facility in China had a perfect record in 2012 and is tracking on the same performance so far in 2013. The Domtar safety culture, the promise we make to ourselves each and every day, is truly universal. Resources: How does this investment fit into the big picture of Domtar’s strategy? JDW: China is one of the chapters in the exciting story of Domtar’s evolution. Our investment in the Chinese market is part of a larger strategy to address the secular decline in paper demand in North America and build a fiber transformation engine tailored for the 21st century. This has meant closing under-performing assets, repurposing assets like the Marlboro Mill from commodity to specialty paper, and growing our Personal Care business via four acquisitions in the past two years. Standing still is not an option in a declining industry. This was the impetus for our 2009 Perform, Grow, Break Out strategy that we are in the full throes of executing today. Domtar is evolving and we’re not done yet building a business for the future. <


Domtar > Resources > Q4 2013 > Page 13

Papers

Promoting the power of print VANÉCIA CARR > Director of Marketing, Printing Papers, Fort Mill Operations Center

T Left to right: Lori Slovik, Technology Manager, Bryan T. Hall of Graphic Visual Solutions and his wife, April Herron, Product Manager, and Michael Makin, President and CEO, Printing Industries of America

Top awards for marketing promotions VANÉCIA CARR > Director of Marketing Printing Papers, Fort Mill Operations Center

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his September, we had the honor of participating in two awards banquets at Print 13 in Chicago. Graphic Visual Solutions (GVS), the printer who worked with us to produce our Dream by Cougar promotion, took home two “Benny” awards, named after Benjamin Franklin, at the International Premier Print Awards. The prizes were handed out at the 2013 Premier Print Awards Gala. It is said that winning a Benny in the printing world is like an actor winning an Emmy. GVS and Domtar won in the categories of Booklets (four or more colors, printers with 51-100 employees) and Hi-Fidelity Printing. Most of the other entries in the Hi-Fidelity Printing category were printed on coated papers, which

traditionally produce a much different result than our uncoated Cougar paper. “One piece winning two Benny awards is almost unheard of in this competition,” commented Bryan Hall, President of GVS. One of the judges commented that “The clever design techniques awed our judges with flawless execution of crossovers and matchups. But what really makes this a dream come true is the amazingly vibrant print on this uncoated surface. Other touches such as the spot UVs and foil just make this dream a reality.” Around the same time, at the prestigious Gold Ink Awards & Hall of Fame Gala, Domtar won big in the category of Brochures/Sheetfed. Lynx Garage: Pride, Passion, Performance won Gold and Journey with Cougar won Bronze. Getting a nod from the printing industry is very gratifying and a powerful endorsement of the quality and performance of our papers. <

he latest release of Print Works – The Power of Paper and Print is an informational brochure for printers and end users that addresses the many challenges and opportunities facing the print and paper industry. There are helpful tips on how to speak about various situations and resource tools for conversations. In a time of compelling alternative forms of communication, print on paper works – and works well – especially when paired with the right digital mix. It’s all about ‘‘print with digital,’’ not ‘‘print versus digital.’’ We have conducted extensive research and engaged with printers and designers, in combination with our own print buying experiences, and have come to the realization that the decision-making process around print has changed. In this new brochure we identify who the “new players” are in the printing industry and how they affect the standard supply chain. We are providing our customers with compelling statistics and talking points about how to sell more paper, print, value through the media mix and environmental issues. Domtar printing paper Account Managers are out sharing this content with merchants, printers and end users today. <


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Papers

Enterprise Group wins major award CRISTEN TAYLOR > Market & Product Manager Fort Mill Operations Center

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nterprise Group was awarded the EPIC Partner of the Year Award at the Trimega/ Independent Stationers EPIC show in San Antonio, TX, on September 19, 2013. The EPIC show was the first time the two buying groups combined together for a joint trade show. The award was given to the supplier that makes a big difference for independent dealers, works to help dealers grow and win market share, earns the trust of the channel by exhibiting fairness and integrity in everything they do, and brings ideas and opportunities to independent dealers. The dealers nominated and then voted for the supplier that demonstrated exceptional customer service and field support, promoted the value of independent dealers, and demonstrated innovative new product development. Enterprise Group was honored and happily accepted the inaugural Partner of the Year Award. <

Left to right are Charles Forman (Independent Stationers), Enterprise Group members Jerdawn Potts, Cristen Taylor, John Esposito and Steve Meyer, and Michael Morris (Trimega).

DOMTAR WINS UNISOURCE PAPER SUPPLIER OF THE YEAR AWARD TODD KIRSCH > Unisource Relationship Manager Fort Mill Operations Center

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his past year was a very successful one between Domtar and Unisource, which resulted in Domtar winning their 2012 Paper Supplier of the Year award. This award is given in conjunction with Unisource’s premier recognition program for their employees, the Pinnacle Club. Only one paper supplier is chosen each year from all the paper mills, including both coated and uncoated. The award’s objective criteria includes sales, inventory turns, obsolete and excess inventory, LOTC (lines on time complete) and compliance (environmental and Unisource requests). There is also a subjective portion such as relationships, responsiveness and overall importance to one another.

by saying “This is really an award for each individual employee at Domtar. It is not specific to one area, department or business channel. Many Domtar employees – in sales, distribution, marketing, customer service, advertising, planning, manufacturing, converting, just to name a few – have a part to play in making Domtar a valuable supplier to Unisource and all of our customers.”

This award is a great example of our core values at work – agility, caring and innovation. It takes all of these traits to become a valued supplier to our key customers. <

In presenting the award, Chris Olson, Vice President – Product Management/Paper for Unisource stated, “Domtar has provided excellent service, including on-time deliveries and order accuracy. Their product accessibility has provided Unisource with efficient and effective inventories. Domtar is a leader regarding environmental and governmental regulations. Unisource’s positive 2012 Domtar sales reflect all of these attributes.” Chris went on to say “Domtar achieved an excellent performance rating during 2012. Unisource greatly values and appreciates its strategic partnership with Domtar, and we look forward to continuing our work together to achieve ongoing success for both of our businesses.” Bill Koehn, Vice President – Printing and Publishing Papers for Domtar, responded

Unisource award


Domtar > Resources > Q4 2013 > Page 15

Papers

Kamloops > Nekoosa > Turbine project Mill goes delivering results “heavy metal”

BONNY SKENE > Regional Public Affairs Manager Dryden Mill

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everal years ago, the Kamloops Mill embarked on a project to replace two aging turbine generators and increase its power generation with the installation of two new turbines. All engineering was done in-house and the installation was performed by Domtar maintenance

Greg Drinkwater, Projects, and Richard Wojak, Power & Recovery Operator

employees under the guidance of specialists from Siemens, the equipment vendor. The new turbines – one was installed in February 2012 and the other in December 2012 – have run well from the beginning and will contribute positively to the competitiveness of the mill, which produces market pulp, for years to come. Project economics were improved through the BC Hydro Power Smart program, which provided approximately 50% of the initial capital investment. The mill also extended the existing agreement under which it sells electricity to BC Hydro to 15 years. “We commend the Province of British Columbia for recognizing the role our industry plays in the economic well-being of the province. Revenue from renewable electricity sales is critical to our overall competitiveness,” said Bill Adams, Manager of Engineering and Strategic Planning. <

CRAIG TIMM > Manager, Public Affairs Nekoosa Mill

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or the third time in two years, Nekoosa showed it was partial to “heavy metal”! On October 14, as part of Wisconsin Manufacturing Month, Nekoosa employees hosted 75 eighth- through tenth-grade students to show them the world of pulp and paper production. Domtar was part of a five-stop tour that also included talks at the local technical college by Wisconsin Governor Scott Walker, Lt. Governor Rebecca Kleefisch, and other state officials. Nekoosa General Manager Mark Bessette spoke to our visitors about the importance of work ethic, attitude and education. He challenged the students to work hard in school and at home and said he hoped to see them applying for future job openings at Domtar.

Sam Rothstein, Mill Technical Services co-op student, leads a paper mill tour. “We will remain as a tour stop for the Heavy Metal Bus Tour because it is that important for Domtar’s future in central Wisconsin,” said Bessette. “Domtar is a key employer here, and our employees love to show off all the things they do each day to serve our customers. Being part of the welcoming group for the governor’s visit was a big plus this year.” Nekoosa is ready for the next “Heavy Metal” stop, which is being planned for May 2014. <

Nekoosa General Manager Mark Bessette helps welcome Wisconsin Governor Scott Walker to central Wisconsin.


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Papers

Hawesville > Our reliab LEADERSHIP TEAM > Hawesville Mill

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oday we hear a lot about reliability. At the Hawesville Mill, we have begun our journey to understand what reliability is and to build and implement a roadmap of what it takes to become reliable. To begin this journey, we held a three-anda-half day onsite training class given by Reliability Solutions. Mill and union leadership attended this class to help us build a common understanding of what it means to be reliable, and what it will require of us to become so. To begin with, we had to understand what reliability means. It’s defined as “an attribute of any system that consistently produces the same results, preferably meeting or exceeding its specifications.” This leadership session helped bring to light what reliability is in a manufacturing location. It showed us that everyone in the mill has a role to play.

The motto the Hawesville Reliability Leadership team created was “Safety because we care, Reliability for our future.” We even created a safety/reliability coin as a constant reminder that reliability and safety are the biggest money we have in our pockets. The ultimate goal of being a reliable manufacturer is to get our assets to perform within their design, consistently and as expected, and to meet the demands of our customers at the lowest cost possible. We need to remember, however, that the cost of our assets includes the cost to install, maintain, and operate them. In this respect, we haven’t done a good job of understanding operating cost. Equipment in a less-than-precision state shortens time between repairs. This increases cost and reduces reliability. It also uses more energy to perform the task it has been designed for, and if it’s not operated correctly, reliability and costs are affected negatively.

One can see pretty quickly how we all have a role to play in creating a safe, reliable and costeffective manufacturing system for Domtar. We identified five pillars underpinning our reliability journey: management, operations, maintenance, materials management and engineering. To be successful, our assets have to perform reliably each and every day, and we can achieve this by using precision maintenance techniques and building those habits into our maintenance process.

‘‘TO BE SUCCESSFUL, OUR ASSETS HAVE TO PERFORM RELIABLY EACH AND EVERY DAY, AND WE CAN ACHIEVE THIS BY USING PRECISION MAINTENANCE TECHNIQUES AND BUILDING THOSE HABITS INTO OUR MAINTENANCE PROCESS.’’


Domtar > Resources > Q4 2013 > Page 17

Papers

bility journey

Windsor > Promoting printed books PROVIDENCE CLOUTIER > Communications Advisor Windsor Mill

T Like most maintenance systems, ours was designed with a time-based preventive maintenance philosophy. Studies now show that time-based maintenance leads to inflated maintenance costs and lackluster reliability for our equipment. Changing from time-based preventive maintenance to condition-based monitoring maintenance involves using different tools in our maintenance practices and using data to schedule repairs. It also requires reviewing our overall asset performance: where we have duplicate assets, why one piece of equipment runs without issue while the other has constant reliability issues, etc. We also have to understand what it takes to perform precision maintenance. To date, we have held two weeks of essential craft skills (precision maintenance) training for two different groups of employees at the Hawesville Mill. The classes were attended by a cross section of maintenance, operations, engineering and leadership. We learned that we have to do maintenance at the right time, in the right way, and it has to be followed up with precision operating processes to ensure the asset is operated within the specifications it is designed for. Precision maintenance means we understand the design tolerances of our assets, and how we can distort those tolerances in our maintenance practices. We learned, for

instance, that it is possible to obtain an acceptable optical alignment when the internal component alignment is distorted, leaving the asset in a state of failure prior to starting it up – even with a “perfect” optical alignment. Mill Leadership has to sponsor the actual use of precision maintenance, and Operations has to allow the time to perform precision maintenance. Maintenance has to plan and schedule differently to perform precision maintenance, and Materials Management has to insure the materials we use in our repairs are not compromised prior to their use. Finally, Engineering needs to integrate reliability into our designs and reviews.

he Windsor Mill has been participating in the Eastern Townships Book Fair for a number of years. The 2013 edition, which took place in Sherbrooke from October 17 to 20, attracted over 15,000 visitors. Since our mill manufactures printing paper for books, the fair was an excellent opportunity to spotlight Domtar, while helping to promote printed books. The activity also served to raise awareness of the importance of making eco-friendly decisions by choosing a paper manufacturer with a commitment to the environment and the forest, as well as by purchasing locally produced paper in stores throughout the region. We did this by explaining how to identify paper manufactured in Windsor through the code printed on the ream cover. After all, the decision to buy ‘‘local’’ can also apply to paper! <

Every time we work on a piece of equipment, it gets closer to being in a precision state. When we cannot get it into a precision state within the timeframe we have, we go back and address it at the next opportunity. New tools, processes, procedures, questions and expectations are all a part of our reliability journey. We’ll aim to understand our assets and listen to what they are telling us. We’ll modify our maintenance support strategies to achieve reliable asset performance. And as a team we’ll get our assets to perform safely, as expected, when expected, within the designed specifications. This will demonstrate to our company leadership that they can depend on the Hawesville Mill’s manufacturing processes to meet the demands of our customers. <

At the Book Fair: Philippe Messier and Jocelyn Leblanc, retired employees and Windsor Mill tour guides


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Sustainability

Nekoosa > Contributing to healthier forests BOB PETERSON > Wood Procurement Manager Nekoosa Mill

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he State of Wisconsin Department of Natural Resources (WDNR) recently recognized Joe Kies, Senior Buyer for Wood Procurement at the Nekoosa Mill, for his service on the Annosum Root Rot Committee.

management practices to minimize the risk of introduction and spread of the pathogen in the state. Joe Kies volunteered to represent Domtar and our industry on this committee, which included public and private foresters, a logger, university professors, forest health specialists and forest pathologists.

Annosum root rot is a fungus pathogen that affects pine species in Wisconsin. The disease is a serious threat to red pine plantations because it spreads quickly through the root system of infected stands.

Based on the committee’s proposal, a guide was finalized and implemented on state lands in May 2013. This final guide was less restrictive and more practical than the original WDNR recommendations. Joe played a key role in effectively communicating industry concerns, finding common ground and practical solutions.

WDNR has developed management guidelines to regulate harvesting activities in an effort to prevent the spread of Annosum. In response to representations from the forest industry, a committee was formed to find a compromise and propose scientifically sound and operationally practical integrated pest

“I would like to express my sincere appreciation for allowing Joe Kies to serve on the Annosum Root Rot Committee,” said Kyoko Scanlon, Forestry Pathologist for the WDNR. “Joe has been a great asset for the committee with his vast knowledge and experience in forestry and forest industry, as well as his professionalism and

Joe Kies, Senior Buyer, Wood Procurement, Nekoosa Mill approachability. His practical problem-solving skills and ability to pay attention to details have been invaluable to the accomplishments the committee has made.” Thank you, Joe, and congratulations on a job well done! <

Hawesville > Teaching forest sustainability and the art of papermaking DAN ALLARD > Wood Procurement Manager Hawesville Mill

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ood Procurement, along with the help of co-op students from the Fine Paper (FPM) and Bleach Pulp (BPM) mills had the chance to teach the benefits of forest sustainability and the art of paper making at two local events.

Annual Conservation Field Day. This event is jointly sponsored by Domtar Hawesville and the Hancock County Conservation District.

students on backyard wildlife, hunting and ATV safety, a healthy environment and composting and recycling.

Forester Cunningham, Wood Procurement Manager Dan Allard, FPM Co-op Rikky Morrisette and BPM Co-op Harley Estes spoke to 150 students about the forest industry, the benefits of a well-managed sustainable forest, as well as providing a hands-on experience in making paper. There were also presentations for the

To make sure the students remembered this was a learning experience, they had to choose a topic they had learned about and write a short essay. Each essay was read by their teachers, who then announced Bailey Hall and Justin Kim as the two winners of gift certificates donated by Domtar Hawesville. <

Danielle Janny and Harley Estes teaching papermaking

Rikky Morrisette and Harley Estes at Annual Conservation Field Day

The first event was on September 20 at the Kentucky Wood Expo. Wood Procurement Forester Russell Cunningham, FPM Co-op Danielle Janny and BPM Co-op Harley Estes made presentations to about 225 children from the Lexington, Kentucky, area as part of the Expo’s educational portion. The second event was on October 17 when Domtar Hawesville hosted the Hancock County Middle School grade 6 students and teachers for the


Domtar > Resources > Q4 2013 > Page 19

Safety & Wellness

Hand injuries can happen to you ALLAN BOHN > Senior Director Corporate Health and Safety Fort Mill Operations Center

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and and finger incidents have historically accounted for about 30% of all annual recordable injuries at Domtar. This year, hand and finger incidents are averaging closer to 40%. All sites have been working on hand safety awareness to aid and assist employees in recognizing the hazards associated with that most basic of tools – our hands. Hand and finger injuries can and have occurred throughout our company, affecting both mill and office personnel. None of us are immune from such injuries for a simple reason: when we

use our hands for any task, we are subject to an incident. Hand incidents and injuries are completely preventable. To protect ourselves, we need to be constantly aware of our exposure – and pay attention! Consider the number of exposures. An employee might lift, use tools, push, or pull hundreds of times per day, resulting in exposure to potential softtissue injury. For the same person, work may involve taking thousands of steps per day. But the same work may require the use of their fingers and hands tens of thousands of times, each one of which has the potential for acute or cumulative injury. Furthermore, the more we engage in any activity, the greater the risk of complacency

and the less likely we will be fully attentive of every movement – each of which is an “opportunity” for injury. With so many finger and hand movements, our level of accepted risk rises. When it comes to fingers and hands, we should never be complacent or take the attitude that “It won’t happen to me’’ or ‘‘I’ve done this a thousand times.” Our colleagues at Domtar Personal Care in Greenville, NC, have taken a creative approach to raising awareness of hand safety and improving the work environment by removing or identifying hand and finger risks. Allen Hudson, the on-site warehouse operations manager, provides a description of this creative process in the article below. <

Greenville > Using hands to raise awareness of hand safety ALLEN HUDSON > Warehouse Operations Manager Domtar Personal Care Greenville Mill

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mployees at Domtar Personal Care in Greenville, NC, recently launched a creative hand safety campaign. At the outset, four behaviours were identified as leading to the most common hand risks: rushing while performing a task, using the wrong tool for a job, fatigue and complacency. On Monday, September 9, green vinyl hands were given out to each team leader to help their team identify areas of risk of hand injuries. Each team was asked to write on the hand the issue that they identified and to place the hand on the work area where this risk was present. Once all the teams identified their risks, the green hands made others aware of the risk. Once the hands were posted, the leadership team for each area assessed the associated risk and developed a reduction/elimination plan for

each item identified on the hands. Once the risk was eliminated, the green hand was removed from the area and placed around larger hands on the cafeteria tables. In addition, hand posters have been placed throughout the site as visual reminders to

increase everyone’s awareness of hand safety. Other activities included a hand safety contest with prizes awarded to the winners. As well, a stress reliever in the shape of a hand with the slogan, “Safety is in my hands” was given to every team member as a constant reminder of the importance of hand safety. <


Page 20 > Q4 2013 > Resources > Domtar

Safety & Wellness

Windsor > Working together to be ready RÉNALD CÔTÉ > Brigade Leader Windsor Mill

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well-prepared response team can make all the difference when it comes to emergency measures. That’s why members of the Windsor Mill brigade and the Windsor area intermunicipal fire department carried out a joint simulation at the mill last September 23.

The activity, an annual event, is aimed at finetuning response techniques between the various first responder groups in order to improve the degree of preparedness and increase efficiency in case of disaster. In all, 15 members of the Domtar brigade, 17 firefighters from the intermunicipal fire department and three ambulance attendants took part in the simulation.

like ours. The exercise familiarized external responders with the mill environment and gave members of both organizations the chance to work as a team and share expertise. In the pursuit of continuous improvement, a feedback process identified the positive aspects of the exercise, and areas where our preparedness can be improved. <

This year, the simulation scenario required the use of a ladder truck from the intermunicipal fire department in an industrial environment

Firefighters operating the ladder truck

Station supervisors, from left to right, front row: François Constant, Steve Lebrun, François Aumais and Jessica Glaude, of Savie; second row: Steve Marcoux, Pascal Proulx, Rénald Côté, Yannick Messier, Christos Élias and Michel Simoneau

Command post

Nekoosa > Training for rescue CRAIG VAN ASTEN > Manager, Safety & Health Nekoosa Mill

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he Nekoosa Mill’s confined space rescue team held training and conducted rescue drills in October. The training and drills help to prepare the team to conduct on-site rescue from confined spaces with varying configurations. A big “thank you” goes out to the 17 Nekoosa Mill employees who volunteer their time and effort to participate on the team. Without their support, this team would not exist!

Team members include: > Bruce Diggles, Power > Dan Goodness, Paper Mill > Karl Reinke, Power > Tammy Winker, Paper Mill > Todd Sweat, Kraft > Cliff Altmann, Paper Mill > Cory Clark, Maintenance > Cody Trickle, Maintenance > Jeff Tuttle, Maintenance > Brad Wiernik, Kraft > Pam Janicki, Kraft > Jerry Alfuth, Kraft > Chris Woodard, Railroad > John Bidwell, Paper Mill > Jaci Hahn, Paper Mill > John Drechsler, Paper Mill > Randy Johnson, Maintenance <

Members of the team lifted Tammy Winker, 3rd Hand on No. 9 Paper Machine, in a rescue basket.


Domtar > Resources > Q4 2013 > Page 21

Safety & Wellness

Ashdown > Hazard mapping efforts recognized by United Steelworkers TAMMY WATERS > Manager, Communications and Government Relations Ashdown Mill

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everal members of the Ashdown Mill’s Mill Safety and Health Committee (MS&HC) attended the annual USW safety conference in Pittsburgh in September. During the conference, awards were presented to both individuals and local unions for accomplishments in the area of health, safety, and environmental activism. While attending one of the plenary sessions, the MS&HC members received an award on behalf of USW Local Union members 13-01327 and 13-01329 and the Ashdown Mill. The A.Q. Evans Award was presented to the team in recognition of the joint effort implementing and leading the Hazard Mapping initiative on the mill site. The program has led to the correction of numerous hazards, empowered the workforce and spread to other locations in the paper industry. “I cannot begin to thank everyone enough for their ongoing support of the Hazard Mapping initiative. It is truly making a positive impact at the Ashdown Mill,” said H. A. Penney, co-chair of the MS&HC. The A.Q. Evans Award is given annually for outstanding accomplishments in occupational safety and health.

Members of the Ashdown Mill Health and Safety Committee who attended USW Safety Conference – Left to Right: Toby Gathright, Jodie Walraven, H.A. Penney, Digger Pond, Donald Bishop, Josh Turnage, Jody Bell and Janet Parker. “As a committee and mill we are very proud of the recognition, but we recognize this is only the beginning and there are more steps to take to achieve zero injuries at the Ashdown Mill – something our team is committed to accomplishing,” stated Digger Pond, co-chair of the MS&HC. <

Ariva > Making snow removal safer SERGE GOYETTE > Health & Safety Specialist

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riva has launched a new occupational health and safety initiative to improve the way snow is cleared from truck and trailer roofs at the Montreal distribution centre. For several years, the Montreal distribution centre has been using a platform to clear snow from truck and trailer roofs. Following an in-depth risk assessment, we decided to improve the system with a brand new and exceptionally safe access ramp. The new ramp is better located, ergonomic and in compliance with regulations for fall prevention from heights and other safety criteria. With this innovation, we will substantially

reduce risk and maintain our excellent safety performance. The new snow removal system has many advantages, among them: 1. Eliminating and/or reducing risks of an incident associated with inadequate snow removal from truck and trailer roofs 2. Avoiding equipment damage related to snow removal 3. Eliminating traffic tickets and fines for Highway Code violations 4. Reducing fuel consumption, since six inches of snow adds nearly 2,500 lbs. to the weight a 53 ft. trailer Our drivers have safety at heart. The road belongs to everyone and we care about the safety of all road users! <


Page 22 > Q4 2013 > Resources > Domtar

Community

Marlboro > Open doors, open minds high school tour AMBER BOWEN > Customer Service/ Additives Lead Marlboro Mill

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he Marlboro Mill invited local high schools to participate in a High School Tour Day on October 18 and 35 juniors and seniors from several area schools answered the call. The participating students were interested in either trade skills or engineering. The students listened as Bill Edwards, Marlboro Mill Plant Manager, introduced them to pulp and paper and addressed some of the misconceptions about the paper industry. He also opened their eyes to the many career possibilities in the industry, within Domtar, and in the Marlboro Mill. Mr. Edwards shared Domtar’s vision, mission and values, and discussed how the mill lives out its values through both community investments and involvement. He also talked about the many innovative and interesting things going on at Domtar.

Students and counselors prepare for a mill tour

Bill Edwards presenting to local high school students A process overview presentation was given by mill employee Woody Graham, followed by a bus tour of the mill and a walk around our state-ofthe-art paper machine. Following the tour, Sherrie Chapman of Northeastern Technical College (NETC) spoke about the opportunities available with the NETC Industrial Training Facility in Marlboro County and their many programs. Jennifer Piercy, North Carolina State University’s Paper Science Engineering Director of Recruiting, spoke about engineering programs, opportunities and scholarships. For

her part, mill employee Amber Bowen informed the students about the Marlboro Mill Pulp and Paper Foundation Scholarship. This day was all about educating the students about the pulp and paper industry and introducing them to the career opportunities in this field, while ultimately inspiring them to pursue an education leading to a career in the paper business. We hope that by opening the mill’s doors to inform and educate local students, we will be able to open the minds of the next generation. <

Nekoosa > Teeing it up for United Way GINNY JOHNSON > Administrative Assistant & ISO Coordinator Nekoosa Mill

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mployees and vendors from the Nekoosa Mill teamed up to host the 2nd Annual United Way Golf Outing this past August to benefit the United Way of Inner Wisconsin. Some 133 golfers hit the links to raise $6,477,

surpassing the $5,000 raised in 2012. Funds were raised through golf fees, as well as special even holes and the purchase of mulligans. “It was great for everyone to come together for a common purpose,” said Tom Weidman, Superintendent of No. 9 Paper Machine. “The funds raised though this event will benefit a lot of people in our local communities. That’s a great feeling.” <

Left to right are the “Masters Champions,” Nolan Hurrish and Jerry Alfuth, Kraft Utility; Kevin Livernash, Wood Room Utility; and Grant Keyzer, Kraft Utility.


Domtar > Resources > Q4 2013 > Page 23

Community

Rothschild and Nekoosa > Friendly contest in the name of charity SUSAN HADAWAY > Human Resources Manager Rothschild Mill

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omtar’s Step into Spring Challenge 2013 brought out the competitive spirit between the two Wisconsin mills. General Managers Matt Fischer, Rothschild, and Mark Bessette, Nekoosa, decided to put their money where their mouth was, all for a good cause.

Danielle Côté, in pink sweater, surrounded by the Domtar team

Windsor > Joining the Run for the Cure NATHALIE BAZIN > Senior Accounting Analyst Windsor Mill

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he CIBC Run for the Cure on behalf of the Breast Cancer Foundation took place on Sunday, October 6. This year, Danielle Côté, cancer survivor and employee at the Windsor Mill’s Finance Department, was ambassador of the race’s fourth edition in Sherbrooke. To support their colleague Danielle and the cause, 24 participants decided to take on the challenge and join the Domtar team’s ranks to run or walk the three-mile course. The CIBC Run for the Cure is first and foremost a celebration recognizing the courage and determination of women with breast cancer. It’s also an opportunity to collect funds on behalf of the

Foundation, and in only a few days, $2,150 was collected by the Domtar team. Members included Nathalie Bazin (team leader), Mireille Chamberland, Eugénie Cloutier, Providence Cloutier, Michel Cloutier, Lucie Corriveau, Gilles Côté, Marie Cyr, Maxime Durocher, Manon Fortin, Sylvain Frappier, France Gagnon, Catherine Goulet-Delorme, Yvan Houle, Johanne Guignard, Sylvie Hamel, André Jacques, Denis Labrie, Lysandre Le Bel, Sylvie Leduc, Jacinthe Letendre, Julien Ouellet, Alain Richard and Phédra St-Pierre. <

It was determined that Rothschild and Nekoosa would compete to see which of the two locations had the highest average number of steps. The mills were competing for $500 to be given to the charity of their choice, with the losing mill cutting the check. The mills are similarly sized and both locations had about 130 steppers enrolled in the challenge. The Nekoosa mill finished the challenge in 11th place with an average of 763,362 steps, with Rothschild coming in 14th place with an average of 724,482 steps. The real winner was Rapid Family Backpacks, a program where families with children facing financial difficulties are given a backpack of non-perishable food items that will make a nutritious meal for their family. <

Left to right are Brian Lang, Matt Fischer, Mark Bessette, Karen Wallner and Jodi Friday, Nutrition Educator, UW Extension Wood County


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Community

Marlboro > Reaching out to students through reading AMBER BOWEN > Customer Service/Additives Lead Marlboro Mill

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he Marlboro Mill recently embarked on a challenge to encourage youth in the community to read more books. Roughly 40% of the children in the surrounding area are not meeting state standards when measuring English/ Language Arts scores on standardized assessment tests. In an effort to support teachers educating local kids, the mill partnered with neighboring community schools to push an initiative entitled “Reach for the Highest Branch.” The project targeted students ranging from Pre-K through eighth grade. Mascot Owen the Owl from Domtar’s Forest Academy kicked off the event by visiting each school to pass out bookmarks. During his visit to Bennettsville Primary, Owen the Owl greeted students as they entered the school. Each participating school was given the goal to have their students read a pre-determined number of books in a nine-week period. When the school achieves their goal, they receive a donation of copy paper from the Marlboro Mill. As author and poet Maya Angelou said, “Any book that helps a child to form a habit of reading, to make reading one of his deep and continuing needs, is good for him.” The Marlboro Mill agrees with Maya, and we are working to see the students of Marlboro County reach for the highest branch and grow their future.<

DuBois > Caring for America’s heroes CRAIG TIMM > Manager, Regional Public Affairs

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omtar employees live the value of caring in their communities. That was very evident on September 7 at a sold-out DuBois Country Club in Pennsylvania, as Fine Paper Converting and Distribution employees, area residents and businesses came together to raise money “For America’s Heroes.” This was the second golf tournament in support of the Wounded Warrior Project (WWP). WWP is a national organization whose mission is to “foster the most successful, well-adjusted generation of wounded service members in United States history.” WPP grants direct aid to service members and their families after they return home.

The golf tournament began with a rifle volley featuring the DuBois Honor Guard.

We were honored to have one of the co-founders of WWP speak at the event and to have a number of wounded service members participate.

“We are proud of our results and the increase in support from our first year,” said Ashley Asti, DuBois Administrative Assistant and Event Committee Chair. “I can’t thank our golfers, volunteers, sponsors and the DuBois community enough for their continued support.” <

Domtar is proud to announce that the event raised $24,000 in direct financial support for

Port Huron > Volunteers clean park ANNA DENSLOW > Entry Accountant Port Huron Mill

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ain and chilly weather didn’t keep this bunch from volunteering their time on a Saturday morning in November! Bottles, foil candy wrappers, a pair of shoes and even a tire were collected. Goodells County Park in Wales, Michigan, is home to the Saint Clair County 4-H Fair and Earth Day Fair. During the Earth Fair, Port Huron employees set up an area which walked attendees through the paper-making process. Hundreds of kids made their own paper to decorate and take home.

Owen the Owl with the Principal and Assistant Principal at Bennettsville Primary, Amber Bowen and students.

America’s heroes! Combined with last year’s event, that’s more than $45,000 donated to this very worthy cause.

A big thank you to the Port Huron Mill crew and family. <

Anna Denslow, Entry Accountant (6 years), Jim Couturier, Brenda Couturier, Senior Financial Analyst (2 years), Brooklyn Couturier (front) and Celeste Lewis-Bradley, Planning Manager (32 years). Missing from picture: John Cooper, Paper Machine 8 Pulper Operator (23 years).


Domtar > Resources > Q4 2013 > Page 25

Community

From left to right, front row, are Amy Burns and Pam Gram. Back row: Carmella Sullivan, Carmen Sullivan and Tony Bailey

Intern Marcia Drabek, left, and mentor Alison Graf

Port Huron > Competing Rothschild > Paper unit in the HeartChase hosts intern AMY BURNS > Human Resources Administrator Port Huron Mill

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he Port Huron Mill’s Wellness Committee, also known as the H.O.T. Committee (Health on Track), participated in the first annual Blue Water HeartChase. This event brings families, friends and coworkers of all ages together in a community-wide competition to uncover clues, solve puzzles and complete challenges in a race to the finish line, all to raise money for the American Heart Association. While the day started cold and rainy, the rain subsided as the competition began. Pam Gram, Programmer Analyst, Tony Bailey, Network Technician, Amy Burns, Human Resources Administrator, Carmella Sullivan, Training Specialist, and Carmella’s mother Carmen all took part as the Domtar H.O.T. team. Once the clock started, participating teams had two hours to complete over 15 checkpoints located throughout downtown Port Huron. Calorie trivia, bowling, an art challenge, golfing, CPR and many other challenging activities were included at each checkpoint. In addition, three-dimensional barcode forms were hidden along the routes, and a team had to find and scan them to accumulate points. Overall, Domtar H.O.T. placed third out of over a dozen teams! Congratulations to the participants for a fine effort! <

ALISON GRAF > Process Engineer Rothschild Mill

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he 2012-2013 school year marked the second year in a row that the Rothschild Mill’s paper unit hosted a student intern from Wausau Engineering and Global Leadership Academy (EGL). Marcia Drabek worked for the paper unit during afternoons for two days a week beginning in November 2012. Marcia was trained and took over a couple tasks normally performed by our college co-op student. This experience gave her exposure to our industry, industrial safety, lab skills, working with operators and working with computers. She plans to attend Michigan Tech to pursue a degree in chemical engineering. The EGL Academy is a new public charter high school which opened in September 2010 in a wing of the Wausau East High School. It offers a problem- and project-based curriculum with overall emphasis on engineering, mathematics, science and technology studies. Senior students are asked to pursue a 90-hour unpaid work internship. They are allowed release time from school in the afternoons to attend their internship and upon completion earn an Employable Skills Certificate from the State of Wisconsin. For employers, the internships are an opportunity to provide youth with relevant work experience, work with future generations of employees, give back to the community and learn from each other. <


Page 26 > Q4 2013 > Resources > Domtar

People and places

Domtar facilities stage events to celebrate Manufacturing Day 2013

JOE BOYD > Site Manager Addison Converting and Distribution Center

CRAIG TIMM > Manager, Public Affairs

D

omtar joined over 700 manufacturers across the United States on October 4 to promote manufacturing careers and their importance to the economy. Various activities were held that day and during the month at Ashdown, Marlboro, Rothschild, Johnsonburg, DuBois and Addison. Invited guests included local economic development and school officials and political representatives, among others.

T

o help celebrate manufacturing month, the team at Addison hosted our state representative on her first visit to Domtar. Representative Deborah Conroy (District 46) is a first-term member of the Illinois Legislature. Her term began in January. She covers the areas of Chicago’s western suburbs, which include numerous manufacturing facilities.

said John D. Williams, President and CEO. “Our sustainable business transformation is as much about investing in people as in machines.”

“A major goal of the mass event was to open minds about career opportunities in the field and underscore the business-critical issue of the skilled labor shortages in manufacturing that cut across industries and geographies,” Rothschild

Addison > New Illinois representative makes first visit

Thank you to all colleagues who helped to make this event a success. < Marlboro

“We are always honored to have our elected officials visit our operation,” said Site Manager Joe Boyd. “It helps us communicate the Domtar story and any challenges we face in our daily operations. Rep. Conroy is supportive of manufacturing in her district.”

Johnsonburg With her background in art and design, Rep. Conroy brought a special interest in the paper products we convert and ship from Addison. The Domtar team was proud to host her and left her with paper samples she can use in her office.

DuBois

Domtar continues to be an active member of the Addison and surrounding communities, and visits from our elected officials help advance the efforts of Addison employees. <

Addison

Site Manager Joe Boyd explains our operation to Rep. Deborah Conroy.


Domtar > Resources > Q4 2013 > Page 27

People and places

Plymouth > Our values at work STEFAN NOWICKI > Manager, Communications a nd Government Relations Fort Mill Operations Center

ur President and CEO John D. Williams was the featured speaker at the Pulp and Paper Manufacturers’ Association meeting in Milwaukee, Wisconsin, on October 25. He spent about 90 minutes discussing our company and our vision/mission/values, and then took questions from the audience.

t is rare to see all three of Domtar’s values exemplified at once. Enter Willie Wiggins, one of our colleagues at the Plymouth Mill. Willie discovered his 10-year-old granddaughter Jazmyne’s writing talents and applied Domtar’s values to help her publish her first book.

Willie was so impressed by her work that he wanted to share her passion and talent with others. Jazmyne’s mother Crystal also helped by doing some research on how to self-publish a book. From that point on, Willie acted as the liaison between his granddaughter and the publisher throughout the lengthy process, which he described as being “like a job” in itself. Jazmyne’s book – The Girl Who Got Lost in the Woods – was published on May 28 and was followed about two months later by a book signing.

The presentation was well received and was another way Mr. Williams promotes the Domtar message to many audiences. Willie Wiggins with granddaughter Jazmyne and daughter Crystal

To encourage Domtar retirees to stay connected with the Company and their former work colleagues.

Colleagues from Addison, Fort Mill, Rothschild and Nekoosa were present to hear the presentation. <

Being a caring grandfather, Willie saw Jazmyne’s talent and wanted to encourage her. His innovative thinking landed Jazmyne a publishing deal. His agility and dedication during the publishing process helped introduce a young author to the world and hopefully will inspire other children to read and write. I speak for all Domtar colleagues in congratulating Willie on truly embodying all three of our values, not just at the mill but at home as well. <

Domtar Alumni on LinkedIn WHY JOIN THE DOMTAR ALUMNI GROUP PAGE ON LINKEDIN?

CRAIG TIMM > Manager, Public Affairs

O

I

According to Willie, Jazmyne has always been an avid reader, getting books mainly from her school and local library, as well as the occasional trip to Wal-Mart. She reads to Willie in her spare time and one day approached him with a children’s story she had written.

Telling the Domtar story

Mr. Williams speaking about Domtar and our industry

On the MOVE! Coming soon, this section will include news of Domtar employees on the move. Please submit information including names, new titles, locations and a picture to resources@domtar.com.

WHO CAN JOIN? All employees who retired from Domtar (and entities that have become a part of Domtar).

Obituaries

HOW TO LINK UP?

Coming soon, this section will commemorate deceased employees and retirees. Please submit information including name, location and picture to resources@domtar.com.

Retired employees who want to stay in contact can sign up on the Domtar Alumni group page in LinkedIn.


Be safe, be merry. This Holiday Season, keep safety and wellness top of mind – at work, at home and on the road. Be aware of the hazards and pitfalls common to this time of year. Let good judgment be your guide to the full enjoyment of family, friends and community. All of the contributors to Resources Magazine wish you a safe and merry Holiday Season and good health and happiness in 2014!


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