MONTRÉAL—Canadian paper manufacturer Tembec is launching a $136 million capital investment program at its Québec facilities, centered on its specialty cellulose pulp operation at the Temiscaming, Que. manufacturing site—near North Bay Ont.
Tembec is a global producer of specialty cellulose—processed from wood pulp—used to bind, strengthen, thicken and generally improve products in the pharmaceuticals, cosmetics, foods, coatings, electronics, construction and energy industries.
The proposed investments will cover a number of upgrades at the Temiscaming site, including the long-planned replacement of 11 existing pulp digesters. Work is already underway, with one digester replaced to date.
In addition, some of the new investment will go toward reducing greenhouse gas emissions.
The Temiscaming site’s high-yield pulp and coated bleached board manufacturing facilities will also benefit from a capital influx, as will the Matane, Que. high-yield pulp facility on the Saint Lawrence River.
The Temiscaming site is supplied mainly with wood fiber from local forests and sawmills in the Abitibi-Témiscamingue region.
This investment qualifies Tembec to benefit from electricity rebates applicable to large industrial power users, provided by the Quebec government in the province’s 2016-2017 budget. Tembec will be reimbursed for $55 million, representing 40 per cent of the $136 million investment.
“Tembec is committed to maintaining a leadership position in the forest products industry, and today marks another major step toward that objective,” said James Lopez, Tembec’s president and CEO.
“It is critical to rely on innovation and modernization to promote the long-term strength of Québec’s forest products sector, to assure a sound future for our businesses, our workers and our communities,” said Luc Blanchette, Québec minister of Forests, Wildlife and Parks.
Tembec has 1,500 employees in Québec, of which 800 work at the Temiscaming site. The publicly traded firm employs 3,000 people globally—in Canada and France—with annual sales of $1.5 billion.