Domtar welcomes innovation investment by Schlumberger in CelluForce

Researching Enhanced Oil and Gas Recovery Using Wood-Derived Nanocrystalline Cellulose

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(NYSE: UFS) (TSX: UFS)

MONTREAL, March 25, 2015 /CNW Telbec/ - Domtar Corporation (NYSE: UFS) (TSX: UFS) announced today an investment by Schlumberger in CelluForce, a joint venture between Domtar and FPInnovations that manufactures wood-derived nanocrystalline cellulose (NCC^TM). The investment is a collaboration to explore the use of NCC to enhance the productivity of oil and gas wells. Schlumberger is the world's leading supplier of technology, integrated project management and information solutions to the oil and gas industry.

NCC is manufactured using a patented process in the world's first facility of its kind, located at Domtar's pulp mill in Windsor, Quebec. NCC (also referred to as Cellulose Nanocrystals, or CNC) is the primary component that provides structural strength to trees. NCC is a renewable, biodegradable, nontoxic material.

Details of Schlumberger's investment in CelluForce remain confidential.

This investment follows a CDN$4 million grant announced by CelluForce in February 2015 from the government of Canada's sustainable development technology program (Sustainable Development Technology Canada, or SDTC) for similar research and development work.

"Innovation is one of our core values at Domtar, so we are pleased to have the opportunity to collaborate with Schlumberger, a recognized technology innovator in hydrocarbon recovery and production," said Patrick Loulou, Domtar's Senior Vice President for Corporate Development and a member of CelluForce's board of directors.

"The Schlumberger investment, coupled with the recent grant from SDTC, creates positive momentum in realizing the benefits of using NCC to improve the efficiency of oil and gas production," said Richard Berry, Chief Technology Officer at CelluForce.

CelluForce Inc. is the world leader in the commercial development of Cellulose Nanocrystals (CNC), also referred to as NanoCrystalline Cellulose (CelluForce NCC™). The company is a joint venture of Domtar Inc. and FPInnovations. The company's head office is in Montreal. For more information, visit: www.celluforce.com.

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About Domtar
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products, including communication papers, specialty and packaging papers, and absorbent hygiene products. The foundation of our business is a network of world-class wood fiber-converting assets that produce papergrade, fluff and specialty pulp. The majority of our pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer and manufacturer of uncoated freesheet paper in North America with recognized brands such as Cougar^®, Lynx^® Opaque Ultra, Husky^® Opaque Offset, First Choice^®, EarthChoice^® and Xerox^® Paper and Specialty Media. Domtar is also a marketer and producer of a broad line of absorbent hygiene products marketed primarily under the Attends^®, IncoPack^® and Indasec^® brand names. In 2014, Domtar had sales of $5.6 billion from some 50 countries. The Company employs approximately 9,800 people. To learn more, visit www.domtar.com.

Forward-Looking Statements
This press release contains forward-looking statements relating to our expectations for the joint venture.  Actual results may differ materially from those suggested by these statements for a number of reasons including the challenges involved in commercializing the technology, possible competitive responses, and the uncertainty of the demand for products of this nature.

 

SOURCE Domtar Corporation

INVESTOR RELATIONS: Nicholas Estrela, Director, Investor Relations, Tel.: [phone] x 85979; MEDIA RELATIONS: David Struhs, Vice-President, Corporate Communications and Sustainability, Tel: [phone]