View from the Top
Arcus Innovation Leaders Series
How business leaders use innovative approaches to shape their strategies.
Domtar’s view on the Innovation Imperative: An interview with Mr. Andrew Tremblay, Business Development Manager, Domtar EarthChoice, Corporate Markets Canada, Domtar Corp.
Mr. Tremblay says that in capital intensive businesses, innovation needs to be seen as a way to increase the return on capital employed.
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In terms of looking forward, over the next five years in your industry, what do you think is really going to drive business? If the business is shrinking in some areas, what will drive growth?
Mr. Tremblay: With Domtar, or any North American company, our biggest competitors are International. International paper companies are not making any investments in North America.
It’s all in Asia, China, Europe or South America. Because of our biomass platform, we’re going to see paper companies go into producing energy for the local grid more than we are now. That’s the future. I think we’re going to be more a cellulose fibre company that does many things with it. We won’t be entirely out of the paper production business, but will see expansion into other goods. I have seen towels made from tree fibre that are just as soft as traditional cotton towels. Whether it be fuel or other things, it’s very interesting.
Why is the competition moving out of North America?
Mr. Tremblay: People are moving away from paper here. The growth is in Asia and South America, the European market is steady. The growth markets are particularly India and China.
That’s where the buying is happening. Some people are investing in mills there, local production, versus shipping. In South America, they use a lot of Eucalyptus fibre, they can be full grown in less than 7 years.
Please describe trends around Marketing and Branding?
We anticipate more co-branding with environmental groups or big users like Xerox and Staples. I can see us gaining credibility through the environmental groups. We have already changed and moved to sustainable practices; it’s just about getting that message out there. We’re only going to talk more about the energy platform. There is also the social aspect of how you treat your workers and your community. “Tell us more about the community you work in” is something we hear from our customers.
A lot deeper decisions around procurement, then?
Mr. Tremblay: Yes, they look at everything – it doesn’t stop at price and product quality. They want to know how you engage with the Aboriginals, what our footprint like, how are community interactions, does the community have a say, what are the benefits for the global community, etc. 
