Domtar's Raymond Royer named 2007 CEO of the year for the North American forest products industry
BOSTON, MA, Sept. 7, 2007 (Press Release) - RISI, the leading information provider for the global forest products industry, today announced that Domtar President and Chief Executive Officer Raymond Royer has been selected for the second time as RISI's North American CEO of the Year for the forest products industry.
Each year, RISI surveys investment analysts and portfolio managers to make nominations for the award based on such criteria as leadership, vision and strategic accomplishment. The 2007 award will be presented to Royer on October 11 at the 22nd North American Forest Products Conference in San Diego, California. Royer will also deliver the keynote address at the event.
"The award recognizes Raymond Royer's leadership role in transforming Domtar into a world-class paper company during a particularly difficult period for the Canadian pulp and paper industry," according to Will Mies, Director, News Editorial, RISI.
Domtar, headquartered in Montreal, QC, became North America's largest producer of uncoated white paper through an innovative $3.3 billion transaction completed in March. The deal combined its assets with those of Weyerhaeuser's fine paper division to form a new corporate entry.
"Before the deal, Domtar was being battered by the strong Canadian dollar and was one of several major competitors battling in the declining uncoated freesheet market, giving the company a somewhat uncertain future," Mies noted.
One analyst stated "The prize should go to Raymond Royer for engineering Domtar's deal with Weyerhaeuser Fine Papers. Mr. Royer has found a way to keep Domtar going despite the impact of a strong Canadian dollar and poor demand for uncoated freesheet. His ability to cement a deal with Weyerhaeuser should secure his company's (near term) future. I can't think of another executive who has done more with so little."
Now analysts say that the "New Domtar" is facing a much brighter outlook as the leading uncoated freesheet producer (with a one-third market share) in a more consolidated North American market. Domtar has also become one of the largest producers of market pulp, which is currently in its strongest market upcycle since the mid-1990s.
With sales of around $6.5 billion and nearly 14,000 employees, the company also has some of the lowest cost mills in the industry and one of the broadest product lines (including its Earth Choice environmental paper grades) as well as much less exposure to the Canadian dollar, analysts noted.
Royer has been at the helm of Domtar since 1996, after leaving Bombardier, the Montreal-headquartered diversified transportation equipment company, where he had been president and chief operating officer.
After joining Domtar, Royer took a number of steps to significantly expand the company, increasing its focus on the white paper market, and expanding its reach into the US market. The most significant move was acquiring four Georgia-Pacific pulp and paper mills in the US for $1.65 billion in 2001.
Analysts voted Royer CEO of the Year in 2003 in recognition of those achievements-making him one of only two industry CEOs to have received the annual RISI award twice. Domtar also remains the only Canadian headquartered company to have its president honored by this prestigious award.
Past recipients of the North American CEO of the Year award include John Faraci of International Paper (2006), A.D. 'Pete' Correll of Georgia-Pacific (2005), Paul Stecko of Packaging Corp. of America (2004), Raymond Royer of Domtar Inc. (2003), Steve Rogel of Weyerhaeuser Co. (2002 and 2001), John Dillon of International Paper Co. (2000), and Michael Smurfit of Jefferson Smurfit Group (1999). Europe's first CEO of the Year award was presented in March 2007 at the European Pulp and Paper Outlook Conference in Barcelona to UPM's Jussi Pesonen.
For more information on RISI's 22nd North American Forest Products Conference, visit www.risiinfo.com/na_conf
About RISI
RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, timber, tissue, nonwovens, printing and publishing industries to help them make better decisions.
Headquartered in Boston (Bedford), Massachusetts, RISI operates offices in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland, Oregon; Sao Paulo, Brazil; Shanghai, China; Singapore; and Charlottesville, Virginia. More information can be found at www.risiinfo.com.
About Domtar
Domtar Corporation is the largest integrated producer of uncoated freesheet paper and one of the largest manufacturers of papergrade market pulp in North America. The company designs, manufactures, markets and distributes a wide range of business, commercial printing, publication as well as technical and specialty papers with recognized brands such as First Choice¨, Domtar Microprint¨, Windsor Offset¨, Cougar¨ as well as its full line of environmentally and socially responsible papers, Domtar EarthChoice¨. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically-located paper distribution facilities. Domtar also produces lumber and other specialty and industrial wood products. The Company employs nearly 14,000 people. To learn more, visit www.domtar.com.