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Tembec constructing $8M pilot plant for ‘Next Generation’ pulp fiber in Quebec

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Tembec constructing $8M pilot plant for ‘Next Generation’ pulp fiber in Quebec

April 11, 2011 - 04:40

TEMISCAMING, QC, April 11, 2011 (CNW) -Tembec today announced that it will proceed with the construction of a pilot plant for the development of a high performance structural product known as Next Generation Sustainable Fibre ("Next Gen"). This project is based on an innovative, Tembec patented process that will use Tembec's Forest Stewardship Council ("FSC") certified pulp and FSC certified lignosulfonates within a modified phenolic resin to produce a structural material with unique strength-to-weight and durability characteristics.

"The Next Generation Sustainable Fibre initiative recognizes the growing demand for environmentally friendly, lightweight structural composites suitable for applications in such areas as infrastructure and engineered components," said Randy Fournier, Senior Vice President, Chemical Products and Kraft Pulp. "Our initial end-use application will be a railway tie for environmentally sensitive areas, with other applications such as automotive components, land and marine transportation infrastructure, and electrical energy generation and transmission infrastructures to be assessed."

The cost of the pilot plant is estimated at approximately $ 8.4 million, with the majority of the funding being provided equally by the Quebec and Federal Governments. Support from the Province of Quebec in the amount of $ 3.45 million will come from the Ministère des Ressources naturelles et de la Faune, through FPInnovations, and the Ministère du Développement économique, de l'Innovation et de l'Exportation. Federal funds of $ 3.45 million will come from Natural Resources Canada/FPInnovations, through the Federal Transformative Technologies Pilot Scale Demonstration Program.

"Tembec is among the world's leaders in Specialty Pulp, and Next Generation Sustainable Fibre is a natural extension of the Company's product and technology development. Applications such as "Next Gen" offer the potential to continue the Company's focus on higher margins in less volatile businesses," said James Lopez, President and CEO of Tembec. "The project announced today, with timely and active support from the Quebec and Federal Governments, will allow this opportunity to be fully developed. It fits with the Company's strategy of building on core competencies such as our specialty pulp and chemical knowledge."

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website athttp://www.tembec.com/.