Tembec pumps $136M into Quebec operation

P&PC Staff
March 24, 2017
By P&PC Staff
Mar. 24, 2017 - Tembec announced today a four-year $136-million capital investment program in its Quebec facilities to improve competitiveness, centred on its specialty cellulose pulp operation at the Temiscaming manufacturing site.

According to the company, this 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.” Tembec will be reimbursed for an amount of up to $55 million, representing 40 per cent 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.

Tembec says the proposed investments will cover various upgrades at the site, including the long-planned replacement of 11 existing pulp digesters. Work is already underway, with one digester replaced to date. Some of the new investment also will go toward reducing greenhouse gas emissions, As well, the Temiscaming site’s high-yield pulp and coated bleached board manufacturing facilities will also benefit from new investments as will the Matane high-yield pulp facility, explains the company.

The Temiscaming site is supplied mainly with wood fiber from local forests and sawmills in the Abitibi-Témiscamingue region. Tembec has a total of some 1,500 employees in Quebec of which 800 work at the Temiscaming site. 

“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 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.”

With principal operations are in Canada and France, Tembec is a manufacturer of forest products: lumber, paper pulp, paper, and specialty cellulose pulp.

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