Domtar expands presence in thermal POS paper market

Fort Mills, South Carolina - The acquisition by Domtar of thermal paper coater and related equipment at a facility in West Carrollton has given Domtar market dominance as the only large-scale North American producer of thermal point-of-sale (POS) paper.

POS is a growing sector in daily retailing and is used for receipts in gas stations, grocery stores, ATMs, printed boarding passes and restaurants.

The facility was previously owned by Appvion Operations, Inc.

“We are excited to add this product line to our portfolio and expand our core capabilities,” says Domtar paper vice president and general manager Rob Melton. “The West Carrollton coater, combined with Domtar’s low-cost base paper, now positions us to compete domestically and globally in the lightweight thermal paper market, while also providing new options for our paper business’ future growth.”

The acquisition complements Domtar’s existing paper business. Many thermal POS paper customers are already Domtar customers and Domtar is familiar with the high-quality thermal paper produced by the West Carrollton coater.

The coater has been applying thermal coating to base paper made at Domtar’s Marlboro mill since 2012, when Domtar agreed to a long-term supply agreement with Appvion. Rolls of 165- inch-wide lightweight base paper are shipped to West Carrollton from the Marlboro mill in South Carolina.

“We consider entering the thermal POS paper business a long-term strategic initiative,” says Domtar pulp and paper president Michael D. Garcia. “This acquisition provides us with access and knowledge into a growing coated specialty papers market. We are excited to start on our plan to grow and strengthen the business for long-term success.”

www.domtar.com

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