Tembec invests $136 million in modernizing Quebec facilities

MONTREAL (Scrap Monster): Montreal, Quebec-based forestry firm Tembec has announced a major four-year capital investment program aimed at improving competitiveness at its Quebec facilities. The four-year $136 million capital investment is expected to mainly target the specialty cellulose pulp operation at the Temiscaming manufacturing site. The company expects that 40% of the investment will come in as electricity rebate.

The planned investment will result in a number of upgrades at the Temiscaming site. The company noted that the 11 existing pulp digesters at the facility will get replaced. The works are already underway and one digester has already been replaced till date. According to Tembec, the replacement is necessary to keep the mill competitive with modern facilities across the world. The investment will modernize the site’s high-yield pulp and coated bleached board manufacturing facilities. Apart of the investment will benefit modernization works at the Matane high-yield pulp facility. In addition, the proposed investment will help the company take big strides in its long-term commitment to significantly reduce green house gas emissions from its facilities, as outlined in its sustainability plans.

According to sources, the Tembec investment program will qualify for electricity rebates introduced in the province’s 2016-2017 budget. Accordingly, Tembec will be reimbursed an amount of up to $55 million, which is equivalent to 40% of the total proposed investment. Incidentally, the rebates are applicable to significant investments made until 2020, which are aimed at improving productivity or energy efficiency at sites.

James Lopez, Tembec’s President and Chief Executive Officer noted that the investment is a major step towards Tembec’s objective of maintaining a leadership position in the forest products industry. Further, it is expected to improve the long-term competitiveness of the company’s manufacturing operations in Quebec, he noted. Lopez also acknowledged the significant support extended by the Government of Quebec in bringing this huge investment into reality. Meantime, Luc Blanchette, Québec Minister of Forests, Wildlife and Parks saluted the Tembec initiative. He also noted that the government is committed to work closely with companies that contribute to long-term prospects of forests products sector through investments that benefit workers and communities.

Tembec has made major investments in green energy projects over the past several years, aimed at improving its environmental performance and maximizing its revenues. The 2011-2015 multi-year capital investment plan by the company had exceeded $500 million. Almost 70% of these investments were for Temiscaming manufacturing site and Tembec’s specialty cellulose facility in Tartas, France.

Tembec is a manufacturer of forest products – lumber, paper pulp, paper and specialty cellulose pulp – and a global leader in sustainable forest management practices. Tembec has operations in North America and France with some 3,250 employees and has annual sales of approximately $1.5 billion. The company’s Temiscaming operations convert the wood fibre received from the Abitibi-Temiscamingue region into high-quality specialty cellulose.