Tembec to invest $136 million in Quebec operations
(Canada, March 24, 2017) Tembec today announced a four-year $136 million capital investment program in its Quebec facilities to improve competitiveness, centered on its specialty cellulose pulp operation at the Temiscaming manufacturing site.
According to Tembec, this investment qualifies the company to benefit from electricity rebates applicable to large industrial power users under the Electricity Discount Program for Consumers Billed at Rate “L”. Tembec will be reimbursed for an amount of up to $55 million, representing 40% of the $136 million investment.
The program, introduced in the Government of Quebec’s 2016-2017 budget, applies to significant investments in the four-year period up to the end of calendar 2020 which increase productivity or improve energy efficiency.
“I want to acknowledge the significant support of the Government of Quebec for investment projects which improve the long-term competitiveness of Tembec’s manufacturing operations in Quebec,” said James Lopez, Tembec’s President and CEO. “Tembec is committed to maintaining a leadership position in the forest products industry, and today marks another major step toward that objective.”
The proposed investments will cover a number of upgrades at the Temiscaming site, including the long-planned replacement of 11 existing pulp digesters — a project required for the site to remain competitive in global markets. Work is already underway, with one digester replaced to date.
In addition, portions of the capital investment will go toward reducing greenhouse gas emissions, while the Temiscaming site’s high-yield pulp and coated bleached board manufacturing facilities will also benefit as will the Matane high-yield pulp facility.
Tembec has a total of some 1,500 employees in Quebec, of which 800 work at the Temiscaming site. (Source: Tembec)