The company sources raw materials such as fiber, chemicals, and energy for its manufacturing operations. Fiber is obtained from local producers, including sawmills supplying residual wood chips, wood harvested from government-owned land under timber supply guarantees or harvesting rights, and wood from company-owned or leased properties. In the United States, fiber primarily consists of softwood, hardwood, and old corrugated containers (OCC). In Canada, fiber includes hardwood, softwood, and residual sawmill chips from company-owned sawmills. Access to fiber from public lands in Ontario and Quebec requires licensing and is subject to annual allowable cut limits, with approximately 25% of Quebec's harvesting rights allocated through open auction. Timber for U.S. sawmills is mainly purchased from timberland owners.
The company procures chemicals—including caustic soda, sodium chlorate, sulfuric acid, hydrogen peroxide, lime, starch, precipitated calcium carbonate, clay, optical brighteners, dyes, and aluminum sulfate—through centralized contracts lasting one to ten years, with market-based pricing. Energy sources comprise biomass, natural gas, electricity, and smaller amounts of fossil fuels and purchased steam under supply contracts with variable pricing. Biomass and fossil fuels are primarily used to produce power and steam for manufacturing and chemical recovery.
The company operates energy cogeneration units at integrated pulp and paper mills, generating energy mainly from renewable biomass. Hydroelectric generation rights at certain facilities arise from company ownership of riverbeds, with additional smaller hydroelectric assets located at the Nekoosa and Rothschild sites.
Domtar's Comment on Supply Chain
The company sources raw materials such as fiber, chemicals, and energy for its manufacturing operations. Fiber is obtained from local producers, including sawmills supplying residual wood chips, wood harvested from government-owned land under timber supply guarantees or harvesting rights, and wood from company-owned or leased properties. In the United States, fiber primarily consists of softwood, hardwood, and old corrugated containers (OCC). In Canada, fiber includes hardwood, softwood, and residual sawmill chips from company-owned sawmills. Access to fiber from public lands in Ontario and Quebec requires licensing and is subject to annual allowable cut limits, with approximately 25% of Quebec's harvesting rights allocated through open auction. Timber for U.S. sawmills is mainly purchased from timberland owners.
The company procures chemicals—including caustic soda, sodium chlorate, sulfuric acid, hydrogen peroxide, lime, starch, precipitated calcium carbonate, clay, optical brighteners, dyes, and aluminum sulfate—through centralized contracts lasting one to ten years, with market-based pricing. Energy sources comprise biomass, natural gas, electricity, and smaller amounts of fossil fuels and purchased steam under supply contracts with variable pricing. Biomass and fossil fuels are primarily used to produce power and steam for manufacturing and chemical recovery.
The company operates energy cogeneration units at integrated pulp and paper mills, generating energy mainly from renewable biomass. Hydroelectric generation rights at certain facilities arise from company ownership of riverbeds, with additional smaller hydroelectric assets located at the Nekoosa and Rothschild sites.
Sources:
Domtar Corporation's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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