Tembec, a manufacturer of forest products, announced a four-year CAD 136 million capital investment program in its Québec facilities in Canada. According to the announcement, the investments will cover a number of upgrades at the Temiscaming site, including the long-planned replacement of 11 existing pulp digesters.
The investment qualifies Tembec to benefit from electricity rebates applicable to large industrial power users under the Electricity Discount Program for Consumers Billed at Rate “L”. Therefore, the company will be reimbursed for an amount of up to CAD 55 million, representing 40% of the CAD 136 million investment.
The program, introduced in the Government of Québec’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.
James Lopez, Tembec’s President and CEO, commented:
“I want to acknowledge the significant support of the Government of Québec for investment projects which improve the long-term competitiveness of Tembec’s manufacturing operations in Québec. Tembec is committed to maintaining a leadership position in the forest products industry, and today marks another major step toward that objective.”
The Temiscaming site manufactures specialty cellulose. It is supplied mainly with wood fiber from local forests and sawmills in the Abitibi-Témiscamingue region of Canada.
Earlier Tembec appointed Pierre Gignac to the Board of Directors of the company.
The company is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose. Its core operations are located in Canada and France. Annual sales total approximately CAD 1.5 billion. Tembec has 3,000 employees.