Growing in personal care business still seems to be a key strategy for Montreal’s Domtar

HOUSTON, TEXAS, December 6, 2012-

Domtar Corporation hasn't detailed its growth strategy for the personal care business, but four themes emerged on November 28 when Domtar CEO John Williams talked to a Wall Street conference: personal care is a cornerstone of the company's overall strategic direction; Domtar probably hasn't made its last significant capital investment in the field; it wants to take the business into new geographic markets; and integrating more of its fluff pulp capacity forward into personal care is a big win for the company.

Williams told the Citi 2012 Basic Materials Symposium that the Montreal-based company thinks its acquisitions of the North American and European Attends brands as well as the airlaid maker EAM Corporation were steps "in the right direction". The company has a five-year target of generating $150 million in operating profits from personal care, and feels it can even "outperform against the current plan by maximizing the organic potential of the business." Domtar estimates its personal care EBITDA is currently running at about $76 million annualized, on a $444 million sales run-rate. It operates nine production lines in Greenville, North Carolina, eight in Aneby, Sweden, and EAM's research and manufacturing facility in Jesup, Georgia.

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