Open main menu
Home
Random
Recent changes
Special pages
Community portal
Preferences
About Wikipedia
Disclaimers
Incubator escapee wiki
Search
User menu
Talk
Dark mode
Contributions
Create account
Log in
Editing
Domtar
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
== History == ===Origins in Britain=== In 1848, Henry Potter Burt founded Burt, Boulton Holdings Ltd. in [[England]], a company that specialized in treating timber against rot from moisture. The company used substances, such as [[creosote]] derived from [[coal tar]], to prolong lumber's useful life, supplying railway ties and pilings for wharves and foundations throughout Europe and the [[British Empire]]. Within eleven years Burt, Boulton was exporting to North America and acquired a sawmill in [[Quebec]]'s [[Eastern Townships]]. In the coal-intensive environment of the nineteenth and early twentieth centuries, there was an ever-increasing source of coal tar, and a demand for treated wood. Growth continued for Burt, Boulton Holdings Ltd. and led to the founding of a new company on February 4, 1903. It was called the Dominion Tar and Chemical Company, Limited. Dominion Tar's first plant was located in [[Sydney, Nova Scotia|Sydney]], [[Nova Scotia]], and began operations just eight months later. In 1910, the company obtained two major contracts. The first, from the [[Canadian Pacific Railway]], was to treat railway ties, and the second, with the Lake Superior Iron & Steel Company (a predecessor of [[Algoma Steel]]), was to process tar produced from the coke ovens at its [[Sault Ste. Marie, Ontario]] mill. This required the financing of two new plants at opposite ends of Eastern Canada. Burt, Boulton retained the majority of shares in the company but took on Senator [[John Stewart McLennan|John S. McLennan]] from Nova Scotia and Drummond, McCall & Co. of Montreal as the corporation's first Canadian shareholders. When the [[First World War]] broke out in 1914, Dominion Tar established its head office in [[Montreal]], Canada. ===Incorporation in Canada=== Throughout the first quarter of the twentieth century, Dominion Tar opened offices in [[Toronto]], [[Halifax, Nova Scotia|Halifax]], [[Vancouver]], and [[Calgary]]. On November 26, 1928, Canadian business magnates [[Herbert Samuel Holt|Sir Herbert Holt]] of Montreal and [[Harold Gundy]] of Toronto acquired the British-owned corporation. In 1929, Dominion Tar and Chemical Company Ltd was formed as a Canadian corporation in order to acquire the assets of the former company, and shortly thereafter offered its shares for public sale. It was then listed on the Montreal and Toronto stock exchanges. By the following year, it had unlisted trading privileges on the [[American Stock Exchange]]. During the [[Great Depression]] of 1931–36, operating costs were slashed and capital expenditures delayed. Employee wages were reduced 10% and management was consolidated. Several plants were closed — some temporarily, others permanently. Dominion Tar withheld its annual dividend on common stock from 1932 to 1937. In 1937, Dominion Tar invested in Industrial Minerals, an [[Alberta]] company that was producing salt under the [[Sifto Canada|Sifto brand]]. In the 1950s, the firm's assets grew from $35 million to over $500 million, with annual sales surging from $33 million to $325 million, and annual net profits climbing from less than $2.25 million to almost $19 million. Operations were still based on coal tar, salt, and construction materials. However, throughout this decade the company negotiated a series of acquisitions to fuel its growth: :* In 1956, it began accumulating shares of Howard Smith Paper Mills, Canada's largest fine paper company.{{citation needed|date=February 2015}} :* In 1958, it entered the field of [[construction materials]] with the acquisition of Gypsum, Lime, & Alabastine Canada Limited, makers of [[drywall|gypsum wallboard]] It also elevated Dominion Tar into the ranks of the largest Canadian-owned corporations, with plants located across the country, over $350 million in assets, and annual sales to match. While continuing to invest in all its business sectors, Dominion Tar began to concentrate efforts on paper manufacturing, and converted the [[Windsor, Quebec]] pulp mill to exclusive production of bleached hardwood pulp and building a new [[Greenfield project|greenfield]] pulp mill in [[Lebel-sur-Quévillon]]. In 1962, the [[Cape Breton]] operations were abandoned, leaving behind Dominion Tar's contribution to the [[Sydney Tar Ponds]], a Canadian [[hazardous waste]] site on [[Cape Breton Island, Nova Scotia]]. ===Creation of Domtar=== In 1961, Dominion Tar entered into a merger with several other companies: :* Howard Smith Paper (involving those shareholders who had not yet sold out to Dominion Tar),{{citation needed|date=February 2015}} :* St. Lawrence Corporation Limited, and :* [[Hinde & Dauch Paper Company|Hinde & Dauch Limited]]. In 1965, Dominion Tar & Chemical Company, Limited became known as Domtar Ltd. (later changed to Domtar Inc.). In addition, the newly formed Domtar was reorganized into several operating divisions: :* Chemicals, :* Consumer Products (sold to [[Bristol Myers]] in 1967), :* Construction Materials (sold to [[Georgia Pacific]] in 1998), :* Kraft and Fine Papers, :* Newsprint and Containerboard, and :* Packaging. In 1967, the latter three units were consolidated into a single pulp and paper group. By then, total corporate assets had reached $477 million, and Domtar was now determined to become a leader in paper manufacturing. ===Acquisitions and rationalizations=== Throughout the 1970s, Domtar began to re-evaluate its non-paper businesses as it continued to expand. The first noteworthy venture was the acquisition of Buntin Reid Paper Co. Ltd., the largest independent fine paper merchant in Canada. Next came the modernization and expansion of the flagship [[Cornwall, Ontario]] mill (closed in 2006), the expansion of the [[Caledonia, Ontario|Caledonia]] gypsum wallboard plant, investments in a new laminated products plant at [[Huntsville, Ontario]], and the acquisition of McFarlaneson & Hodgson Inc., a major Canadian fine paper merchant. Domtar also launched several joint ventures to increase its lumber operations and to supply more wood to its newsprint mill in [[Dolbeau, Quebec]]. In 1978, [[Argus Corporation]], a long-time controlling shareholder in Domtar, entered into a private deal with [[MacMillan Bloedel]] to sell its 19% stake. Macmillan Bloedel made a [[takeover bid]] for the rest of Domtar's shares, and Domtar retaliated with its own bid for MB's shares. When the Province of British Columbia announced that it was opposing any attempt to acquired MB, both bids were dropped and MB sold its Domtar shares to the ''[[Caisse de dépôt et placement du Québec]]'' in 1979. In 1981, the Caisse and the ''[[Société générale de financement|Société générale de financement du Québec]]'' expanded their shareholdings to a total of 42% of all outstanding common shares.<ref>{{cite book |author= Peter Clancy|title= Micropolitics And Canadian Business: Paper, Steel, And The Airlines|url= https://archive.org/details/micropoliticscan0000clan|url-access= registration|access-date= July 16, 2013|year= 2004|publisher= Broadview Press|location= Peterborough|isbn= 1-55111-570-0|page=[https://archive.org/details/micropoliticscan0000clan/page/95 95]}}</ref> In 1979, Domtar acquired Reed Limited, a subsidiary of a U.K. pulp and paper manufacturer, with three corrugated container plants, a linerboard mill, and a waste [[paper recycling]] plant, all in the Toronto area. That same year, Domtar acquired Kaiser Cement's gypsum resources in the United States and Canada.<ref>{{cite news|title = Kaiser Corp., Montreal Firm Agree To Gypsum Assets Sale|url = https://news.google.com/newspapers?nid=1350&dat=19780322&id=kfROAAAAIBAJ&sjid=cAIEAAAAIBAJ&pg=4693,1877192|newspaper=[[Toledo Blade]]|date = March 22, 1978|access-date = July 16, 2013}}</ref> Lastly, the company founded Domtar Resources Inc. as an entry into the natural gas and oil exploration business in western Canada. The levelling off of energy costs eventually led to the venture's demise. In the early 1980s, Domtar withdrew from its manufacturing activities abroad and closed its U.K. fine paper mill. Paper remained paramount and Domtar began to explore the potential for paper recycling, and the Packaging Group proceeded to convert purchased waste paper into pulp. In 1989, the company divested itself of the Arborite Products and Salt divisions, and exited the consumer products business to turn to manufacturing commodities for conversion or packaging prior to sale. In December 1997, Domtar and [[Cascades (company)|Cascades Inc.]] developed a joint venture called Norampac. A major North American manufacturer and distributor of container board, Norampac is Canada's largest producer of corrugated packaging. Since 2006, Cascades owns Norampac. In 1998, it bought the [[E. B. Eddy Company]]. In January 2000, Domtar launched an e-business application, e-PAPER, enabling merchants and distributors to communicate with Domtar via the Internet. It also enabled customers to check on inventory, place orders, and track orders in transit via truck-mounted [[Global Positioning System|GPS]] units. In July 2000, Domtar completed its acquisition of Ris Paper Company Inc., one of the largest independent merchants of commercial printing and business papers in the United States. On August 7, 2001, Domtar purchased four paper mills and their associated businesses and assets from [[Georgia-Pacific]] Corporation for a total of US$1.65 billion. With the acquisition of mills in [[Ashdown, Arkansas]]; [[Nekoosa, Wisconsin|Nekoosa]] and [[Port Edwards, Wisconsin|Port Edwards]] in [[Wisconsin]]; and [[Woodland, Washington County, Maine|Woodland, Maine]], Domtar became Canada's largest paper company in terms of sales, third-largest producer of uncoated free sheet paper in North America, and fourth-largest in the world. The Port Edwards plant was closed in 2008 and sold in 2013,<ref>{{cite news|author=John Schmid|title = Domtar sells assets of former Port Edwards paper mill to Ohio firm|url = http://www.jsonline.com/business/domtar-sells-port-edwards-paper-mill-to-ohio-firm-799avst-200268841.html|date = March 27, 2013|newspaper = [[Milwaukee Journal-Sentinel]]|access-date = July 17, 2013}}</ref> and the Woodland plant was sold in 2010.<ref>{{cite web|title = Domtar Sells its Woodland, Maine, Market Pulp Mill|url = http://www.globalpapermoney.org/domtar-sells-its-woodland-maine-market-pulp-mill-cms-5011|date = October 1, 2010|publisher = Paper Money|access-date = July 17, 2013}}</ref> In August 2011 Domtar acquired Attends Healthcare, Inc., manufacturer and supplier of incontinence products, from KPS Capital Partners, L.P. for $315 million.<ref>{{cite press release|title=Domtar announces the acquisition of Attends Healthcare, Inc.|url=http://www.prnewswire.com/news-releases/domtar-announces-the-acquisition-of-attends-healthcare-inc-127737498.html|work=PR Newswire|access-date=7 April 2014}}</ref> Domtar also purchased Attends Healthcare Limited, manufacturer and supplier of adult incontinence care products in Europe, from Rutland Partners for €180 million, pursuant to a definitive agreement entered into on January 26, 2012.<ref>{{cite press release|title=Domtar completes Attends Europe acquisition|url=http://www.prnewswire.com/news-releases/domtar-completes-attends-europe-acquisition-141023313.html|work=PR Newswire|access-date=7 April 2014}}</ref> The brand was founded by [[Procter and Gamble]] in 1979. ===Merger with Weyerhaeuser=== On August 22, 2006, Domtar, Inc. agreed to merge with the paper division of [[Weyerhaeuser]].<ref>{{cite web|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJ9SJjCAzPGE|title = Weyerhaeuser, Canada's Domtar to Merge Paper Assets|date = August 23, 2006|author = Christopher Donville|publisher = [[Bloomberg News]]|access-date = July 16, 2013}}</ref> The merger was effected as an arrangement under the ''[[Canada Business Corporations Act]]'', taking place in several steps:<ref>{{cite web|url = http://secfilings.nyse.com/filing.php?doc=1&attach=ON&ipage=4631129&rid=23|title = Arrangement involving Domtar Inc. and the Weyerhauser Fine Paper Business|date = January 27, 2007|publisher = Domtar Inc.|access-date = July 16, 2013}}{{Dead link|date=April 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> :* Weyerhauser transferred its division to Weyerhauser TIA, Inc.,<ref>a [[Delaware corporation]]</ref> whose shares would be spun off to Weyerhauser's shareholders. :* Domtar's shareholders would exchange their shares for those of Weyerhauser TIA. :* The shareholdings were effectively split 55% for Weyerhauser's shareholders and 45% for Domtar's former shareholders. :* Weyerhauser had the right to nominate a majority of the new board of directors. On March 7, 2007, the transaction officially closed, and Weyerhauser TIA was subsequently renamed as Domtar Corporation.<ref>{{cite web|title = Amended and restated Certificate of Incorporation of Domtar Corporation|date = June 10, 2009|url = http://www.domtar.com/files/corporate/Certificate_of_Incorporation.pdf|access-date = July 16, 2013|archive-url = https://web.archive.org/web/20130901221400/http://www.domtar.com/files/corporate/Certificate_of_Incorporation.pdf|archive-date = September 1, 2013|url-status = dead}}</ref> In March 2013, Domtar announced it was acquiring Xerox's US and Canadian Paper businesses and began being the exclusive seller and distributor of Xerox products as of June 1, 2013.<ref>[http://news.xerox.com/news/Domtar-to-acquire-Xerox-US-and-Canadian-paper-business Domtar to Acquire Xerox’s U.S. and Canadian Paper Business] {{Webarchive|url=https://web.archive.org/web/20130603232004/http://news.xerox.com/news/Domtar-to-acquire-Xerox-US-and-Canadian-paper-business |date=2013-06-03 }} Retrieved 2013-06-03</ref><ref>[http://www.egpaper.com/company/Whats-New.aspx Enterprise Group What's New - May 2013] {{webarchive|url=https://web.archive.org/web/20130615142010/http://www.egpaper.com/Company/Whats-New.aspx |date=2013-06-15 }} Retrieved 2013-06-03</ref> Cornwall coated cover was produced for a time in Chinese paper mills due to the closure of the Cornwall, Ontario plant, but production has since ceased. ===Acquisition by Paper Excellence=== On May 11, 2021, privately held forest products company [[Paper Excellence]] announced that it was acquiring Domtar Corp. for US$2.8-billion.<ref>{{Cite news|title=Paper Excellence to buy Montreal's Domtar for US$2.8-billion in shift into U.S. market|url=https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-paper-excellence-to-buy-montreals-domtar-for-us28-billion-in-shift/|access-date=2021-05-11}}</ref><ref>{{Cite web|title=B.C.-based Paper Excellence to buy rival Domtar for US$3 billion|url=https://vancouversun.com/business/local-business/b-c-based-paper-excellence-to-buy-rival-domtar-for-3-billion}}</ref>
Edit summary
(Briefly describe your changes)
By publishing changes, you agree to the
Terms of Use
, and you irrevocably agree to release your contribution under the
CC BY-SA 4.0 License
and the
GFDL
. You agree that a hyperlink or URL is sufficient attribution under the Creative Commons license.
Cancel
Editing help
(opens in new window)