Earlier this week, the European Commission issued a public notification that it had received notice of the proposed transfer of ownership of Asia Pulp & Paper Group (“APP”) to Jackson Wijaya, the founder and sole owner of Domtar. This transfer, once completed, will be the outcome of normal course succession planning by Jackson Wijaya’s father, Oei Tjie Goan, which is particularly prevalent among families of Indonesian and other Southeast Asian entrepreneurs, like the Wijayas.
Jackson Wijaya Inherits APP Shares
As is well known, Jackson Wijaya comes from an entrepreneurial family, spanning generations. Jackson decided to follow the family tradition of launching his own independent business. Having attended the University of Michigan, Jackson was familiar with North America and felt that it was the right place to branch out on his own, founding what is now known as Domtar.
Fast-forward several years, under Jackson’s ownership the company has grown from a few assets to an institution with a significant presence in Canada and the United States, as well as operations in France and Brazil.
This summer, Jackson’s father informed him that, as part of his succession planning, he had made the decision to transfer ownership of APP from himself to Jackson. While Jackson has no intention of taking his father’s position overseeing APP, he is proud to have been selected to continue the family’s business. The notification from the European Commission used the word “acquires” to describe this selection of Jackson to be the new owner of APP. In reality, Jackson is “receiving” from his father the ownership of the shares in APP at a time and in the manner chosen by his father. This is not what many would consider an “acquisition” — it is merely the receipt by Jackson from his father of the shares as part of a prudent succession-planning exercise.
What This Means for Domtar
The headline is that Jackson’s inheriting APP shares has no impact whatsoever on Domtar, and any suggestion to the contrary is ill-informed and patently false.
At Domtar, and its predecessor Paper Excellence, Jackson has imbued and emphasized the need to operate responsibly in a highly regulated global market — from an environmental sustainability and innovation perspective, as well as an understanding that meaningful partnerships with its local communities is paramount to a successful enterprise.
In particular, Domtar’s commitment to environmental sustainability has never wavered, nor will it now. The company ensures that 100 percent of its forest management, chain of custody and controlled wood adhere to internationally recognized standards. By sourcing fiber exclusively according to FSC, SFI or PEFC guidelines, Domtar safeguards the environmental integrity of its operations. That will not change.
In addition, there are no changes to how Domtar operates, including its governance and management. The company’s day-to-day operations will continue under the direction of its experienced Management Board, ensuring consistency and continuity. Any engagement with APP will occur at arm’s length, understanding that Domtar’s priority continues to be doing what is right for its own stakeholders.
Domtar’s End Markets
The markets Domtar sells its products to will remain global, as is typical for industries like pulp and paper manufacturing. Canada is an exporting nation, with exports driving 31 percent of the country's gross domestic product [source: FPAC]. In industries like ours, domestic demand alone is insufficient to sustain operations. Roughly 80 percent of Domtar’s manufactured paper products and 100 percent of its lumber and wood products are sold to customers in Canada and the United States, while pulp is exported internationally.
As shared with Canada’s Standing Committee on Natural Resources, Domtar is not seeking to increase its sale of pulp to China — either before or after Jackson’s inheritance of APP shares. Any suggestion that Domtar would shift Canadian production to Asia is not only unfounded but would also be economically unfeasible. The company remains focused on operating efficiently to meet the needs of its established markets while upholding its commitments to sustainable and responsible production under North American regulations.
Unwavering Commitment to Certification and Sustainability
The Domtar companies have been a proud supporter of the Forest Stewardship Council (FSC) since its inception, with a strong track record of adhering to the highest standards of sustainable forest management and responsible fiber sourcing. Domtar has enthusiastically taken many tangible steps to demonstrate our commitment to FSC principles over many years, and our full commitment to sustainable forest management and responsible fiber sourcing will never waver.
Domtar is engaging directly and cooperatively with FSC to ensure that its certification, which is a result of its long history of sustainable forest management and responsible fiber sourcing, is unaffected by Jackson’s proposed ownership of APP.
Stewardship of Forest Lands
Domtar’s approach to forest management is grounded in responsibility and collaboration. In Quebec, where most of the 22 million hectares of Canadian forest lands we manage are located, the provincial government is responsible for forest management. As in all Canadian provinces where we operate, these lands are publicly owned and governed by provincial authorities.
Domtar and its predecessor companies do maintain management responsibilities for certain forests across Canada:
- In Quebec and Ontario, Domtar owns 200,000 hectares of land under strict regulations as well as third-party certified forest management standards.
- In Ontario, Domtar manages 3.9 million hectares of Crown land under strict federal and provincial regulations.
- In Saskatchewan, Domtar collaborates with the Meadow Lake Tribal Council through Mistik Management to sustainably manage 1.9 million hectares of forest.
- In Nova Scotia, the Domtar sister companies own and manage 171,200 hectares of forest and hold a Crown license for an additional 73,000 hectares.
These efforts demonstrate Domtar’s commitment to sustainable forest management, guided by provincial and federal legislation and rooted in partnerships with local communities and Indigenous groups.
Charting a Path Forward
As Domtar moves forward, it remains committed to its core principles: sustainability, innovation and community. Jackson's vision to empower experienced executives and embrace technological advancements ensures that the company will continue to lead the way in environmental responsibility and operational excellence.
Domtar’s independence and operational integrity endure, regardless of any developments outside of the company. The company’s focus on its established markets and diversified client base ensures stability and success for the long term. Together, Domtar’s employees, partners and stakeholders are not just preserving a legacy—they are building a future rooted in sustainable growth and shared success.
