Domtar boosts mainland's pulp and paper industry
Discovery Reports
One of the drivers of the mainland's 12th five-year plan is the transformation and modernisation of its pulp and paper industry. Reflecting rapid growth, the gross industrial output of the mainland's paper industry last year totalled HK$849.37 billion, a 13.2 per cent increase from the previous year.
Domtar recognises that sustainability is pivotal in securing the future of the mainland's pulp and paper industry. Seizing the opportunity to play a role, Domtar is expanding its presence on the mainland with the opening of its paper converting and distribution facility in Guangzhou. This move puts Domtar closer to the market in an effort to contribute to balancing economic, environmental and social concerns in the paper industry.
"To build a good China business, we need to have presence there. It is about building a team of local people to help us respond faster to market opportunities," says Patrick Loulou, senior vice-president for corporate development.
Domtar is engaged in the manufacturing, marketing and distribution of a wide variety of fibre-based products: communication papers, speciality and packaging papers, paper-grade and speciality pulp and adult incontinence products. Through a series of strategic acquisitions, Domtar has become one of the largest uncoated fine paper and pulp producers in the world.
Before opening the Guangzhou facility, Domtar was servicing the mainland market through its Hong Kong representative office. The new paper converting and distribution facility allows Domtar to serve the market directly and foster stronger ties with customers.
"Working closely with our customers enables us to help them maximise the productivity of their manufacturing processes. We are a supply chain partner rather than just a supplier," Loulou says.
Approximately 78 per cent of Domtar's paper production capacity is in the United States and 22 per cent in Canada. Domtar provides the mainland with materials, including Lighthouse pulp, from two mills: the Plymouth, North Carolina, mill that is focused on fluff pulp for adult diapers, and the Kamloops, British Columbia, mill that produces softwood pulp.
