Tag Archives: Quebec

Today the Government of Canada made two announcements through the Transformative Technology – Pilot Scale Demonstration Program in Quebec.

• Tembec in Temiscaming, Quebec, is receiving $3.5 million in a joint project with the Government of Quebec to develop innovative wood products made of cellulosic composites.
• Lauzon Planchers de bois exclusifs in Saint-Norbert, Quebec, will receive $390,000 to demonstrate a new technology that can increase the surface hardness and durability of hardwood flooring through the application and polymerization of resins.

The objective of the TTP-PSD is to demonstrate the feasibility of new forest products technologies in pilot-scale demonstration in industrial settings.

Source: Government of Canada

Cascades is continuing to consolidate its operations, by announcing the closure of its Norampac plant in Le Gardeur, Quebec.

The Le Gardeur plant is specialized in the conversion of corrugated products, and has annual revenues of $8 million.

In preparation for this closure, the plant’s operations will be redirected progressively towards the other Norampac Québec based plants that already serve the greater Montreal region.

Nearly 50 employees will be affected by this closure that will be effective before the end of 2011.

“The decision to cease operations at the Le Gardeur plant can be explained by the necessity to continue the consolidation of our Québec operations. In fact, the demand in the Canadian corrugated industry has been affected by unfavorable economic conditions for the past few years and it is imperative that we make the adjustments to take into account this new reality. This initiative will therefore allow us to optimize our production in the province, reduce our costs, improve our profitability, while continuing to offer quality services to our customers”, said Marc-André Dépin, President and Chief Executive Officer of Norampac.

In order to help employees affected by this closure, Norampac has prepared a relocation program throughout its other facilities and will offer assistance regarding employment searches.

Source: Cascades

Cascades has recently added new deinking equipment to their Breakeyville, Quebec plant, and the cost of $3.7 million.

Strategically focused on producing deinked kraft pulp of the highest quality, this strategic investment will drive improvements in the quality of Cascades’ fine papers, while also protecting jobs.

Started in 2010, this initiative required the addition of several types of equipment, including a flotation cell, washers/thickeners, a disperser and a clarifier, and it also involved the expansion of the building located in Breakeyville (Quebec).

Committed to sustainable development, Cascades took its focus on recovery to a whole new level by sourcing equipment from various plants. Alain Lemaire, President and CEO of Cascades, said, “This investment shows our commitment to maintaining our competitive edge in a down economy and challenging market situation. We believe that innovation is the key to our company’s growth.”

As a result of this investment, pulp quality has greatly improved. Visible dirt and glue residue have each decreased 50%, while the whiteness has slightly increased. “We consider this to be a very significant benefit, especially as the quality of raw materials – waste paper to be recycled – is declining more and more. We believe this investment will allow us to remain competitive in continuing to offer high quality recycled products,” said Langevin.

Since 1985, the Breakey Fibres mill has specialized in the manufacture of recycled deinked kraft pulp, mainly used in the production of Cascades’ fine papers, such as the Rolland Enviro100 family of products.

Source: Cascades

Tembec is receiving a loan for $75 million from the Quebec Government – through Investissement Quebec – to upgrade a boiler at their mill in Temiscaming.

The money will be used to upgrade the energy efficiency of the mill’s boilers. The project details are scarce, but are expected to be finalized and announced in a few months.

“We were looking at some investment in the Temiscaming plant but the details are not completed and that’s why we’re not ready at this time to really be more specific,” vice-president, communications Linda Coates.

The funding was announced today in the provincial government’s Gazette.

Read more:
Tembec secures $75 million Quebec government loan to upgrade Temiscaming boilers (The Canadian Press)

Domtar Corporation has reached a settlement in its dispute with the City of Windsor regarding the tax evaluation of Domtar’s Windsor mill.

The agreement between the two parties is based on application of the Court of Québec judgment regarding the 2006-2007-2008 roll. The judgment by the Administrative Tribunal of Québec ratifies the agreement between the parties, to wit, to apply to the Court of Québec judgment of September 27, 2010 to the 2009-2010-2011 roll.

In October 2010, Domtar informed the municipality that it wished to come to an agreement. “We are satisfied with the work done by the experts on both sides to apply the clauses in the judgment on the 2009-2010-2011 roll and pleased that the tribunal has ratified our agreement. We can now turn the page and continue our efforts to position the mill for the future,” said Martin Lorrion, Vice-President, Operations – Domtar Region 1.

Following the settlement, Domtar withdrew its originating motion for judicial review before the Québec Superior Court for the 2006-2007-2008 roll.

Source: Domtar

Natural Resources Canada Press Release:

An agreement between Natural Resources Canada and the Fiducie de recherche sur la forêt des Cantons-de-l’Est will help expand our understanding of forest conservation, restoration and production in the Eastern Townships.

The Fiducie, which promotes sustainable forest management by supporting research projects in forestry, will receive a total of $75,000. The Honourable Christian Paradis, Minister of Natural Resources, made the announcement with Dr. Benoit Truax, trustee and executive director of the Fiducie, Marcel Lebœuf, actor, lecturer and also a trustee, and Dr. Daniel Gagnon, Fiducie trustee and a professor at the Université du Québec à Montréal.

“The results of this research will help to further our understanding and improve the management of Quebec’s forests,” said Minister Paradis. “Planning for sustainability will allow our forest industry to thrive while maintaining the health and diversity of forest ecosystems.”

“We are very pleased with this support. It will allow us to intensify our research and knowledge transfer on every aspect of forest management in a populated setting,” said Dr. Benoit Truax. “Over the last 20 years, we have planted more than 20,000 trees in species restoration and biomass production sites. These sites are now used by all of our stakeholders as benchmarks for forest assessment.”

With the knowledge transfer gained from this project, forest owners will benefit from the small-scale application of an ecosystem management system that supports the planting of fast-growing tree species and species best suited for the restoration of degraded forests. The agreement between Natural Resources Canada and the Fiducie was signed on July 13, 2010, and the final report is expected in March 2011.

Tembec has announced a capital investment totalling $25.7 million for its high-yield pulp mill located in Matane, Quebec.

The investment will result in “energy, environmental and economic benefits”. Funding will come mainly from the Federal Government and the Province of Quebec, with $18.9 million related to black liquor credits earned by the Company under the Federal Green Transformation Program and $6.3 million from the Agence de l’efficacité énergétique’s Heavy Oil Consumption Reduction Program.

The project has two main components. The first is a new anaerobic treatment facility. Estimated to cost $23.9 million, this system treats effluent and collects the methane gas produced in the treatment process, allowing it to be used as a bio-fuel for drying the pulp produced at the site. With an estimated cost of $1.8 million, the second component involves the installation of an electric boiler that will replace the current heavy oil fueled boiler. The combined effect of the two components will result in the elimination of all heavy oils and the vast majority of the light oils currently used as a fuel source for the generation of the mill’s various process steam and drying requirements. They will also result in a significant improvement in the mill’s cost structure, with EBITDA projected to increase by $6 million on an annual basis, beginning when the project is completed in mid-2012.

“This investment will result in a significant reduction in costs for Matane and will allow the mill to be competitive in global markets for years to come,” said Yvon Pelletier, Executive Vice President and President, Specialty Cellulose and Chemical Group. “The environmental benefits will also provide an appealing attribute in the marketplace.”

“The investments announced today will improve the position of the Matane mill in environmental, energy and economic terms. This initiative is consistent with the Company’s stated objectives of investing in its core businesses, pursuing opportunities related to green energy projects, and moving all of its facilities into the first or second quartile of their respective cost curves,” said James Lopez, President and CEO of Tembec.

“Tembec is grateful for the support shown by the Province of Quebec and by the Federal Government. Minister Normandeau and Minister Paradis saw the potential offered by these projects and were diligent and effective advocates on behalf of the mill and the region. We thank them for their efforts,” concluded Mr. Lopez.

Source: Tembec

Smurfit-Stone Container Corporation has announced that all of its U.S. paper mills have been recommended for chain-of-custody certification to the Sustainable Forestry Initiative (SFI), Programme for the Endorsement of Forest Certification (PEFC), and Forest Stewardship Council (FSC) standards.

Having its mill system fully certified allows Smurfit-Stone to trace and verify the origin of the fiber used in its papermaking operations. This is becoming an increasingly important requirement for many companies that are looking to partner with packaging manufacturers that can help them meet their social and environmental goals.

“Smurfit-Stone is committed to responsible and sustainable fiber sourcing, and completing this certification process division-wide reaffirms our beliefs,” said Mike Exner, Senior Vice President and General Manager, Mill division. “The chain-of-custody certification also helps us better support our customers in meeting their sustainability goals.”

The chain-of-custody certification audits were conducted over a two-week period from November 29, 2010, to December 3, 2010. Smurfit-Stone’s mills will have the following certifications:

• SFI Certified Fiber Sourcing – U.S. mills’ procurement system
• SFI chain-of-custody certification – U.S. mills
• PEFC chain-of-custody certification – all pulp and paper mills
• FSC chain-of-custody certification – all pulp and paper mills

Smurfit-Stone’s Matane, Quebec, mill has also been recommended for PEFC and FSC certifications, and its La Tuque, Quebec, mill received PEFC and FSC certifications in 2009. Smurfit-Stone anticipates extending the chain-of-custody certifications within its converting operations throughout 2011 and 2012.

Source: Smurfit-Stone

AbitibiBowater‘s subsidiaries, Bowater Canadian Forest Products Inc. (“BCFPI”) and Abitibi−Consolidated Company of Canada (“ACCC”), have entered into an agreement with the provinces of Ontario and Quebec that will go in to effect after the company emerges from creditor protection, and will apply for 5 years.

As a result, the governments of Quebec and Ontario have separately confirmed to ACCC and BCFPI their intention to adopt the funding relief regulations to provide, among other things, that AbiBow Canada’s aggregate annual contribution in respect of the solvency deficits in its material Canadian registered pension plans for each year from 2011 through 2020 would be limited to the following:

• a Cdn$50 million (approximately $48.9 million) basic contribution
• beginning in 2013, if the plans’ aggregate solvency ratio falls below a specified target for a year, an additional contribution equal to 15% of free cash flow up to Cdn$15 million (approximately $14.7 million) per year
• beginning in 2016, if the amount payable for benefits in a year exceeds a specified threshold and the plans’ aggregate solvency ratio is more than 2% below the target for
  that year, a supplementary contribution equal to such excess (such supplementary contribution being capped at Cdn$25 million (approximately $24.4
  million) on the first occurrence only of such an excess).

Should a plan move into a surplus during the 2011 – 2020 period, it would cease to be subject to this funding relief. After 2020, the funding rules in place at the time would apply to any remaining deficit.

In addition to an agreement not to terminate voluntarily any of BCFPI and ACCC’s pension plans in Quebec or Ontario before the date of emergence from the creditor protection proceedings, AbiBow Canada has undertaken, among other things, to:

• not pay a dividend at any time when the weighted average solvency ratio of its pension plans in Quebec or Ontario is less than 80%
• abide by the compensation plan detailed in the plans of reorganization with respect to salaries, bonuses and severance
• direct at least 60% of the maintenance and value−creation investments earmarked for the Company’s Canadian pulp and paper operations to projects in Quebec and at least 30% to projects in Ontario
• invest a minimum of Cdn$50 million (approximately $48.9 million) over a two to three year construction period for a new condensing turbine at the Thunder Bay, Ontario facility, subject to certain conditions
• invest at least Cdn$75 million (approximately $73.3 million) in strategic projects in Quebec over a five−year period
• maintain the Company’s head office and the current related functions in Quebec
• make an additional solvency deficit reduction contribution to AbiBow Canada’s pension plans of Cdn$75 (approximately $73.3), payable over four years, for each metric ton of capacity reduced in Quebec or Ontario, in the event of downtime of more than six consecutive months or nine cumulative months over a period of 18 months
• create a diversification fund by contributing Cdn$2 million (approximately $2 million) per year for five years for the benefit of the municipalities and workers in the Quebec operating regions
• pay an aggregate of Cdn$5 million (approximately $4.9 million) over five years to be used for such environmental remediation purposes instructed by the province of Ontario
• maintain and renew certain financial assurances with the province of Ontario in respect of certain properties in the province

Source: AbitibiBowater

Quebec has struck a deal with AbitibiBowater to protect employee pensions.

Quebec’s pension agency will allow AbitibiBowater to make reduced pension contributions while it continues its restructuring effort. Abitibibowater has also agreed to freeze dividend payments if the pension accounts fall below 80% solvency.

The deal is conditional on the company maintaining its Montreal headquarters while ensuring that Quebec benefits from 60% of all maintenance and value-added projects.

Only AbitibiBowater’s 6,000 employees in Quebec are covered by this deal, and not the 2,000 that work in other provinces.

Source:
Quebec offers pension deal to Abitibibowater (Toronto Sun)