Domtar Invests in Prisma Renewable Composites, LLC

Company Press Release

Domtar Corporation (“Domtar”) announced it has acquired a majority interest in Prisma Renewable Composites, LLC (“Prisma”), a company focused on developing advanced materials from lignin and other natural resources.

With its investment, Domtar will help commercialize the process of using lignin to make engineered plastic compounds such as Acrylonitrile Butadiene Styrene (ABS) and other high-value fiber and lignin applications.

“Innovation is core to Domtar Biomaterials’ growth strategy,” said Domtar Biomaterials vice president, Mark DeAndrea. “We’re pleased to have the opportunity to partner with an industry leading renewable composite company. Domtar Biomaterials is a bridge between science and commercialization. This investment leverages Prisma’s scientific research capabilities and unique product development strategy with Domtar’s commercialization and lignin production expertise.”

“We are excited about this partnership with Domtar,” Prisma CEO Adam McCal said. “We believe their commercialization plans and capabilities give Prisma an incredible advantage in establishing a robust supply chain from lignin to the final material production.”

Lignin – the natural glue that holds wood fibers together – is a byproduct of the Kraft pulping process that has traditionally been burned to provide energy to a mill. However, it also has the potential to be used in a wide range of industrial applications as a sustainable and bio-degradable alternative to petroleum and other fossil fuels. Domtar is a leader in lignin separation and the development of lignin-based materials. The company recently installed a demonstration plant in Ontario, Canada, to show how lignin pellets can potentially be used as a bio-alternative to plastic, chemicals and other petroleum-based products.

About Domtar

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 10,000 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.1 billion, and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina.

About Prisma Renewable Composites

Prisma Renewable Composites, LLC is a spin-off of TennEra, LLC. Operating between academia and industry, and having license agreements with both Oak Ridge National Laboratory and the University of Tennessee Research Foundation, Prisma’s technology includes lignin-derived thermoplastic co-polymers, polymer blend compositions, lignin-acrylonitrile polymer blends, and its patented lignin fractionation process, evolUTIATM, a process that creates very pure lignin and cellulose streams.

Contact:

Jan Martin – Senior Manager Media & Community Relations – (803) 802-8027

Source: Domtar Corporation