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Domtar Completes Labor Agreement at Recently Acquired U.S. Mills

Press release from the issuing company

MONTREAL, Jan. 8- Domtar Industries Inc. is pleased to announce that it has completed successful negotiation of a six-year labor agreement with PACE International Union (Paper, Allied-Industrial, Chemical and Energy Workers International Union) Locals 5-1327 and 5-1329 at its Ashdown, Arkansas mill. The labor agreement at the Ashdown mill is the second for Domtar since the company purchased four pulp and paper facilities in the United States in August 2001. Domtar and Local 27 PACE; Local 330 I.B.F.O.; Local 1057 I.B.E.W.; Local 1490 I.A.M.A.W.; Local 2400 U.B.C.J.A. at the company's Woodland, Maine facility agreed to a six-year labor agreement in October of last year. "I am very pleased that we were able to come to an agreement quickly and without any work stoppage or interruptions at two of our four newly acquired manufacturing facilities,'' said Roger H. Brear, Senior Vice President, U.S. Pulp and Paper Manufacturing Group. "These agreements are fair for both our employees and our company and according to our industry standards. With these in hand, we will continue to devote our full attention to safely manufacture the highest quality pulp and paper products and consistently meeting the needs of our customers.'' The labor agreements at Domtar's Nekoosa and Port Edwards, Wisconsin, locations will expire in 2003, and negotiations on those agreements are scheduled to take place at that time.