Tembec pleased with funding announcement
February 24, 2006 By Pulp & Paper Canada
Although the Communications, Energy and Paperworker’s Union may have given the recent Ontario government’s pledge o…
Although the Communications, Energy and Paperworker’s Union may have given the recent Ontario government’s pledge of support for the forestry industry a somewhat lukewarm response, Tembec is more receptive.
The announcement, issued by Premier Dalton McGuinty and Natural Resources Minister David Ramsay, confirmed the province will start funding 100% of the cost of primary road building and 50% of the cost of building secondary roads. Additionally, capital will be extended to the support of maintenance cost sharing to include those costs associated with secondary roads.
“The delivered cost of fibre is one of the key cost elements in this industry and is an area where Ontario producers have been challenged. While once fully funded by the government, support for road building and maintenance had eroded over the last 15 years,” said James Lopez, president and CEO of Tembec. “The funding announced today, along with the announcement of last summer, will combine to have a positive effect on delivered fibre costs. This is very good news for both Tembec and the industry.”
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