FORT MILL, S.C.--(BUSINESS WIRE)--Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced it has acquired a majority interest in Prisma Renewable Composites, LLC, 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.
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. To learn more, visit www.domtar.com.
About Prisma Renewable Composites LLC
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.
Statements in this release about our plans, expectations and future performance, including the statements by Mr. Williams and those contained under “Outlook,” are “forward-looking statements.” Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under “Risk Factors” in our Form 10-K for 2017 as filed with the SEC and as updated by subsequently filed Form 10-Qs. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.