Fortress Paper to convert Fraser’s Thurso mill to dissolving pulp, bioenergy (April 01, 2010)
April 1, 2010 By Pulp & Paper Canada
VANCOUVER -Fortress Paper Ltd., a B.C.-based producer of security and specialty papers, has agreed to acquire the assets of Fraser Papers’ northern bleached hardwood kraft mill in Thurso, Que., for $3…
VANCOUVER -Fortress Paper Ltd., a B.C.-based producer of security and specialty papers, has agreed to acquire the assets of Fraser Papers’ northern bleached hardwood kraft mill in Thurso, Que., for $3 million. Fortress Paper intends to convert the mill into a specialty cellulose (dissolving pulp) operation, and concurrently, to build a biomass-based cogeneration plant at the Thurso mill which will produce green electricity.
The Thurso mill will be acquired by a wholly-owned subsidiary, Fortress Specialty Cellulose Inc. It will be Fortress Paper’s only mill in Canada.
The company expects to spend approximately $153 million to convert the non-operating northern bleached hardwood kraft (NBHK) mill into a high quality specialty cellulose mill and to construct a new cogeneration facility. The specialty cellulose mill is planned to have an annual production capacity of more than 200,000 air dried tonnes and is expected to be completed in mid-2011.
Fortress Specialty will focus on producing dissolving grade cellulose for the textile industry, primarily targeting viscose fibre (rayon) products.
Fortress Paper also plans to construct a 25-megawatt cogeneration facility to service a net 18.8-megawatt power supply agreement over a 15-year term. The location of the cogeneration facility provides it with access to on-site generation of biomass and an extensive local network of chip and other biomass suppliers. It is expected to be supplying electricity in the fourth quarter of 2012.
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