Reinforcing its unrelenting commitment for a cleaner environment and conformity to sustainable practices, leading paper products manufacturer Domtar Corporation (UFS) recently achieved a unique milestone in the industry by selling 5 million tons of Forest Stewardship Council (FSC) certified uncoated fine paper in North America. Despite this first-of-its-kind feat, Domtar’s share prices have gone downhill since March-end this year. We remain inquisitive to see if the FSC certified paper will be able to breathe a fresh lease of life into the beleaguered company’s share prices.
EarthChoice Product Line of Domtar is reportedly the widest range of FSC certified papers that are currently available for sale in the market. At present, it accounts for over 20% of the total sales of the company. The industry milestone signifies the commitment of the company to focus on environment-friendly sustainable practices and its due accreditation by the market.
Earlier in 2005, Domtar became the industry pioneer in North America when it began offering FSC certified paper by conforming to sustainable practices and collaborating with some of the world's leading environmental organizations, including the Rainforest Alliance and World Wildlife Fund (WWF). The FSC logo and Rainforest Alliance Certified seal on EarthChoice papers ensure consumers of sustainable forest management initiatives undertaken by Domtar for clean air and water, carbon sequestration and wildlife habitat.
However, despite all these credentials, Domtar has witnessed steady erosion in investor confidence as exhibited by its falling share prices. The company has also witnessed negative earnings estimate revisions for both the current quarter and year.
Domtar manufactures and distributes a wide array of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. The company is the largest integrated marketer of uncoated freesheet paper in North America with established brands such as Cougar, Lynx Opaque Ultra, Husky Opaque Offset, First Choice and Domtar EarthChoice.
Domtar also owns and operates an extensive network of strategically located paper and printing supplies distribution facilities. Other leading players in the industry include International Paper Company (IP), Neenah Paper, Inc. (NP) and Clearwater Paper Corporation (CLW).
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