Bio-Insight

"Our Government's top priority remains the economy," said M.P. Jean. "With the economic recovery still fragile, we will continue to take action to protect jobs in Canada, including the important forestry jobs in Boyle."

As part of the Pulp and Paper Green Transformation Program, the Boyle mill will receive $62.9 million to be used for upgrades that will improve the mill's energy efficiency and allow it to provide Alberta's power grid with enough green electricity to power 8,400 homes.

Despite signs of recovery in some segments of the forest sector, there remains a need to find new and more efficient ways of using wood, wood fibre and its byproducts. Today's announcement is part of the Harper Government's plan to improve the environmental performance and competitiveness of Canada's forest industry by focusing on innovation and new product development that will ultimately expand market opportunities for Canadian pulp and paper related products.

"With today's announcement in Boyle, our Government is continuing to implement our plan to support Canada's forest sector and the Canadians who depend on it," said M.P. Jean. "The Government's investments are continuing our action to expand market opportunities for Canadian forest products, reduce greenhouse gas emissions and help protect the jobs of the families who depend on our forest sector for their livelihood."

Today's announcement builds on the success of many initiatives that are helping to sustain and enhance Canada's forest industry and the communities that depend on it. Budget 2010: Leading the Way on Jobs and Growth established 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.

"We welcome and appreciate the support we have received from Natural Resources Canada under this program," said Eric Ashby, Vice-President and General Manager of the Domtar Kamloops Mill. "This is the second major capital improvement in our mill announced in the last twelve months and we look forward to further improving the energy efficiency of our operations."

It is expected that these new energy conservation projects will come on-line in the third quarter of 2011.

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. Domtar owns and operates a total of four pulp and paper mills in Canada, all eligible under this program.

"The investments from the program such as the five announced today serve as an excellent example of smart policy and smart spending. It demonstrates a strong understanding of the transformation now taking place in Canada's forest products industry." says the President and CEO of FPAC, Avrim Lazar. "The funds are helping the forest products industry become more energy and cost efficient as well as retaining jobs and supporting Canada's rural economy in the long term."

Canada's pulp and paper industry, hard hit by the recent recession, has been working hard to retool itself and gain a competitive edge as a "green supplier". Mills have dramatically reduced their usage of fossil fuels and FPAC members are working toward the ambitious goal of using 100% renewable energy in all their operations.

"We truly appreciate how this program is helping the sector enhance its economic competitiveness as a green leader in the marketplace." says Lazar. "Forest product companies have been able to make necessary capital improvements to better prepare for a return to profitability. It is helping ensure that Canada's pulp and paper industry remains one of the most successful in the world."

Lazar says this is a good example of industry and government continuing to work together. "I look forward to working with the government in the future on similar programs to help Canadian mills transform and meet the growing demand for green energy and green products in a world aggressively moving in this direction," he says.

FPAC provides a voice for Canada's wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. The $54-billion-a-year forest products industry represents almost 2% of Canada's GDP and is one of Canada's largest employers operating in hundreds of communities and providing hundreds of thousands of direct and indirect jobs across the country. All FPAC members are signatory to the landmark Canadian Boreal Forest Agreement.