Canada funds $22.7M energy efficiency project at Domtar’s Dryden pulp mill

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Canada funds $22.7M energy efficiency project at Domtar’s Dryden pulp mill

May 24, 2010 - 07:59
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DRYDEN, ON, May 22, 2010 (CNW) -Domtar Corporation (NYSE/TSX: UFS) today announced that it will proceed with a project at its Dryden, Ontario pulp mill to improve electricity self-sufficiency with the installation of a new turbine. The capital investment of CDN$22.7 million will be entirely funded by credits received under the Government of Canada's Pulp and Paper Green Transformation Program.

"We are grateful to Natural Resources Canada for their support under this program," said Jim Blight, Dryden Mill Manager. "As we prepare the groundwork for this important mill upgrade and celebrate this announcement, we also recognize our people's efforts to improve our safety performance and cost structure."

With detailed design work and procurement activities underway, work related to the installation of the new turbine and associated equipment will take place in 2011.

"As the largest recipients of funding under the program, we thank the Government of Canada for investing in our industry. We are excited to move forward with important upgrades to our eligible Canadian operations with both environmental and economic benefits for the communities in which we operate, as is the case in Dryden here today," said John D. Williams, President and Chief Executive Officer of Domtar Corporation.

Domtar was allocated a total of CDN$143 million dollars for investments aimed at improving energy efficiency and environmental performance under the Pulp and Paper Green Transformation Program. It owns and operates a total of four pulp and paper mills in Canada, all eligible for this program.