Nova Scotia loans Northern Pulp $14.7 million to fix air pollution problem
Nova Scotia is giving Northern Pulp more than $20 million in loans and refinancing to upgrade their mill.
- $14.7 million repayable loan
- $2.5 million forgivable loan, contingent on installing the new air pollution equipment and reaching employment and wage target
- refinancing $5.4 million of a repayable loan from 2009
Northern Pulp has been ordered by the province to fix its air pollution. These loans, along with $5 million from the company, will allow Northern Pulp to implement new environmental technology sooner to significantly reduce air particulates, and make other capital improvements on the more than 40 year-old mill.
The new equipment will more effectively removes particles from flue gas, will cost $12 million.
Northern Pulp will also spend $10.2 million to build a state-of-the-art wood-chip plant to improve supply-chain efficiency, reduce operating costs and create 20 new jobs.
These projects will help save the company $9 million annually.
Northern Pulp produces northern bleached softwood kraft, which is mainly made in Canada and the Nordic countries. It has longer and stronger fibre lengths and diameters than anywhere else in the world, making it a critical ingredient for products such as toilet paper, napkins, paper towels, adult and child diapers, packaging materials, printing paper and newsprint.
Source: Government of Nova Scotia
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