Domtar sells Sault hardwood operation

Domtar Inc. has announced that it's sold its Sault Ste. Marie hardwood operation to a group led by Domtar's former local manager Jim Boniferro.

The following is the full text of Domtar's news release:

******************************* Domtar sells its Sault Ste. Marie hardwood sawmill

MONTREAL, Mar 14, 2003 -- Domtar announced today it sold the assets of its Sault Ste. Marie hardwood sawmill, to Boniferro Mill Works Inc. of Sault Ste Marie.

At the same time, Domtar has also entered into a 5-year agreement with Boniferro Mill Works Inc. to secure chip supply for its pulp and paper manufacturing operations while providing the new operator with start-up business. Moreover, Domtar has entered into a one-year renewable lease agreement for various buildings and equipment enabling 51 of its employees to continue to dry and dress softwood lumber for other Domtar mills.

"I am glad to begin a new business relationship with Jim Boniferro's group" said Serge Constantineau, Domtar's General Manager, Remanufacturing Facilities.

Further adding "Domtar has worked diligently with Boniferro Mill Works Inc. and public authorities to ensure the smooth transition of all required operating licenses.

Hence, Domtar's Forest Resource Processing Facility License and the grant to the entitlement to the supply of forest resources for the mill have been successfully transferred to Boniferro Mill Works Inc."

Mr. Constantineau concluded by saying, "This project was supported by the Mayor's office and the Sault Ste. Marie Economic Development Corporation. Thanks to their support, Domtar was able to met its needs and those of the community".

Domtar is the third largest producer of uncoated freesheet paper in North America.

It is also a leading manufacturer of business papers, printing and publishing papers, and specialty and technical papers.

Domtar manages according to internationally recognized environmental standards 22 million acres of forestland in Canada and the United States, and produces lumber and other wood products.

Domtar has 12,000 employees across North America.

The Company also has a 50% investment interest in Norampac Inc., the largest Canadian producer of containerboard.