Minister notes ‘concerning’ reports about pulp and paper giant’s behaviour, vows to monitor situation

The Canadian government is closely monitoring Canada’s largest pulp and paper company, now known as Domtar, to ensure it upholds the commitments it made when seeking permission to acquire Resolute Forest Products in 2023. Natural Resource Minister Jonathan Wilkinson made this statement during a parliamentary committee meeting, responding to questions from New Democrat MP Charlie Angus.

Wilkinson emphasized that the government obtained specific commitments from Paper Excellence, now rebranded as Domtar, to ensure a net benefit to Canada. These commitments include maintaining Canadian leadership within the company, continuing production at the mill in St. Félicien, Quebec, adhering to Canadian laws, and learning from Resolute’s environmental practices.

However, concerns have been raised about the company’s connections to Asia Pulp & Paper (APP), a controversial conglomerate known for forest destruction in Indonesia. Paper Excellence, owned by Jackson Wijaya, is now taking over control of APP from his father, Teguh Ganda Wijaya. The company has assured that APP will simply be a client of Paper Excellence, but questions remain about the relationship between the two entities.

Angus raised concerns about Canadian wood fibre being supplied to China by Paper Excellence, potentially impacting decisions about Canadian forests from Shanghai. Wilkinson directed these questions to Industry Minister François-Philippe Champagne, prompting further scrutiny into the matter.

The government’s approval of Paper Excellence’s acquisition of Resolute Forest Products has come under fire, with accusations of oversight and misinformation. The company’s complex corporate structure and past financing arrangements have raised red flags, prompting calls for transparency and accountability.

The World Wildlife Fund has called on the Forest Stewardship Council (FSC) to reconsider certifications for Domtar, Paper Excellence, and Resolute following the change in ownership within the Wijaya family. The FSC disassociated from APP in 2007 due to its destructive forestry practices in Indonesia, and now seeks to investigate the implications of the ownership shift.

As the Canadian government continues to monitor Domtar and its connections to APP, questions remain about the environmental and social impact of these companies’ operations. Transparency, accountability, and adherence to environmental standards will be crucial in ensuring a sustainable future for Canada’s pulp and paper industry.