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Tembec to receive $18.9M from Canadian government for energy project at Matane mill in Quebec

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Tembec to receive $18.9M from Canadian government for energy project at Matane mill in Quebec

January 10, 2011 - 03:47
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MATANE, QC, Jan. 10, 2011 (Press Release) -The Harper Government today announced a new investment to protect jobs in Canada's forest industry through the Pulp and Paper Green Transformation Program. The announcement will benefit Tembec's mill in Matane, Quebec and was made by the Honourable Christian Paradis, Minister of Natural Resources.

"The prosperity of our regions is a priority for the Prime Minister and our Government," said Minister Paradis. "Investments like this one stimulate the growth of a domestic clean energy industry, help to preserve the environment by reducing greenhouse gas emissions and protect high-quality jobs in the forest sector for Canadians."

The Tembec Matane mill will receive $18.9 million in funding from the federal Pulp and Paper Green Transformation Program to be used to invest in equipment to help reduce greenhouse gas emissions and produce renewable biogas.

By helping them to produce more economically- and environmentally- sustainable forest products, this federal investment will help to make Tembec Matane more attractive and viable in the global market place.

"This investment will result in environmental, energy and economic benefits, a great combination," said James Lopez, Tembec's President and CEO. "It is also consistent with Tembec's overall strategy of investing in its core businesses and moving all of its facilities into the first or second quartile on their respective cost curves. We want to thank the Federal Government and Minister Paradis for their commitment to both the environment and the economy."

To help the mill realize this project and achieve its goals, the Government of Quebec is investing $6.3 million through l'Agence de l'efficacité énergétique.

Today's announcement builds on the success of many initiatives that are helping to sustain and enhance Canada's forestry industry and the communities that depend on it.Budget 2010: Leading the Way on Jobs and Growthestablished the $100-million Investments in Forest Industry Transformation program to promote the development, commercialization and implementation of advanced technologies in the forest sector - helping create a world-class industry able to compete in the clean energy economy of tomorrow.

In addition, under Canada's Economic Action Plan the Government has committed $170 million to assist the development of next-generation forest products and expand global markets for Canadian forest products. This funding includes $40 million to develop pilot-scale demonstrations under the Transformative Technologies Program.