8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

January 8, 2008/January 7, 2008

(Date of Report/Date of earliest event reported)

DOMTAR CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	001-33164	20-5901152
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

395 de Maisonneuve Blvd. West

Montreal, Quebec

Canada H3A 1L6

(Address and zip code of principal executive offices)

(514) 848-5555

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 1.02     Termination of A Material Definitive Agreement

On January 7, 2008, Domtar Corporation issued a press release announcing that its wholly-owned subsidiary, Domtar Inc., has terminated the agreement to sell its forest products business to Conifex Inc. Pursuant to the agreement, reached on June 21, 2007, Domtar Inc. would have sold to Conifex sawmills and other forest operations situated in Ontario and Québec for approximately CDN$285 million including an estimated CDN$50 million of working capital.

The agreement was terminated pursuant to its terms as both parties recognized that required closing conditions had not been met.

A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

ITEM 9.01     Financial Statements and Exhibits

(d) Exhibits

Exhibits 99.1:   Press release of Domtar Corporation, dated January 7, 2008.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DOMTAR CORPORATION
(Registrant)
By:	/s/ Razvan L. Theodoru
	Name: Razvan L. Theodoru
	Title: Vice-President and Secretary
Date: January 8, 2008

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Exhibit Index

Exhibit No.	Exhibit
99.1	Press Release of Domtar Corporation, dated January 7, 2008

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EX-99.1

Exhibit 99.1

	FOR IMMEDIATE RELEASE

DOMTAR AND CONIFEX AGREE TO TERMINATE DEAL

Montreal, January 7, 2008 – Domtar Corporation announced today that its wholly-owned subsidiary, Domtar Inc., and Conifex Inc. have terminated the agreement announced June 22, 2007, relating to the sale of Domtar Inc.’s forest products business.

Conifex was to acquire sawmills and other forest operations situated in Ontario and Québec. Both parties recognized that closing conditions had not been met pursuant to the terms of the agreement.

Domtar will continue to seek opportunities to maximize the value of these assets as well as pursue initiatives to improve their operational efficiency.

Domtar Corporation (NYSE/TSX: UFS) is the largest integrated producer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade pulp. 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

All statements in this press release that are not based on historical fact are “forward-looking statements”. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions “Forward-Looking Statements” and “Risk Factors” of the prospectuses contained in the registration statement on Form S-4 filed with the SEC. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statements contained in this press release.

TICKER SYMBOL	MEDIA RELATIONS	INVESTOR RELATIONS
UFS (NYSE, TSX)	Michel A. Rathier Tel.: 514-848-5103	Pascal Bossé Tel.: 514-848-5938