The company used substances, such as creosote derived from coal tar, to prolong lumber's useful life, supplying railway ties and pilings for wharves and foundations throughout Europe and the British Empire.

Within eleven years Burt, Boulton was exporting to North America and acquired a sawmill in Quebec's Eastern Townships.

In the coal-intensive environment of the nineteenth and early twentieth centuries, there was an ever-increasing source of coal tar, and a demand for treated wood.

Burt, Boulton retained the majority of shares in the company but took on Senator John S. McLennan from Nova Scotia and Drummond, McCall & Co. of Montreal as the corporation's first Canadian shareholders.

Throughout the first quarter of the twentieth century, Dominion Tar opened offices in Toronto, Halifax, Vancouver, and Calgary.

On November 26, 1928, Canadian business magnates Sir Herbert Holt of Montreal and Harold Gundy of Toronto acquired the British-owned corporation.

In 1937, Dominion Tar invested in Industrial Minerals, an Alberta company that was producing salt under the Sifto brand.

However, throughout this decade the company negotiated a series of acquisitions to fuel its growth: It also elevated Dominion Tar into the ranks of the largest Canadian-owned corporations, with plants located across the country, over $350 million in assets, and annual sales to match.

In addition, the newly formed Domtar was reorganized into several operating divisions: In 1967, the latter three units were consolidated into a single pulp and paper group.

Domtar also launched several joint ventures to increase its lumber operations and to supply more wood to its newsprint mill in Dolbeau, Quebec.

In 1978, Argus Corporation, a long-time controlling shareholder in Domtar, entered into a private deal with MacMillan Bloedel to sell its 19% stake.

In 1981, the Caisse and the Société générale de financement du Québec expanded their shareholdings to a total of 42% of all outstanding common shares.

[6] Lastly, the company founded Domtar Resources Inc. as an entry into the natural gas and oil exploration business in western Canada.

A major North American manufacturer and distributor of container board, Norampac is Canada's largest producer of corrugated packaging.

On August 7, 2001, Domtar purchased four paper mills and their associated businesses and assets from Georgia-Pacific Corporation for a total of US$1.65 billion.

[8] In August 2011 Domtar acquired Attends Healthcare, Inc., manufacturer and supplier of incontinence products, from KPS Capital Partners, L.P. for $315 million.

[9] Domtar also purchased Attends Healthcare Limited, manufacturer and supplier of adult incontinence care products in Europe, from Rutland Partners for €180 million, pursuant to a definitive agreement entered into on January 26, 2012.

Domtar ceased operations in Sydney in 1962 abandoning its storage tanks, waste disposal lagoons, pipes, buildings and equipment.

[21] By the late 1980s, Domtar was pumping "an average of 102 million litres of waste water into the St. Lawrence River every day".

[22] By the mid-1990s this Domtar landfill was rapidly filling up with sludge, bark, and lime dregs from the Cornwall kraft and fine paper mill.

In response, Domtar began selling dewatered mill waste to Cornwall and area residents labeled as "Soil Conditioner".

The dump which is officially named, the "Big Ben Landfill And Recreation Area", currently receives demolition waste and asbestos from the decommissioned paper mill.

In 1991, the Edmonton Board of Health issued warning letters, telling Hermitage neighbours to keep their children away from that area.

Other Domtar sites contaminated by creosote and coal tar by products include; "Sunalta" in Calgary, Alberta; Truro, Nova Scotia; Newcastle, New Brunswick; and New Westminster, British Columbia.

[30] As of 2019, amongst the COVID-19 outbreak, Domtar announced a temporary reduction at its paper-making capacity at its Kingsport Mill, Tennessee due to decreased demand during the pandemic.

[32][33][34] In 2010, Domtar joined with FPInnovations to create a new company that uses nanocrystalline cellulose, a material whose applications potentially include optically reflective films, high-durability varnishes, and innovative bioplastics.

[36] Domtar has manufacturing, distribution and research and development facilities in the following locations:[38] In January 2021, the company announces that it has entered into an agreement to sell its personal care business to American Industrial Partners (AIP) for $920 million.