Displaying items by tag: Tembec

Tembec has confirmed a $190-million capital investment to upgrade its specialty cellulose manufacturing facility at Temiscaming, Que. This investment will increase annual production of green electricity by up to 40 megawatts, reduce sulfur dioxide emissions by 70%, increase Temiscaming's annual production capacity of specialty cellulose by 5,000 tonnes, and make Temiscaming one of the world's lowest-cost specialty cellulose manufacturing facilities.

Pöyry's Energy business group has been awarded the detail engineering and procurement assistance support contract for the project.

This project is the first phase of a two-phase investment plan for the facility. It will involve the replacement of three old boilers with a new high-pressure boiler designed to burn waste sulfite liquor, a co-product of the specialty cellulose manufacturing process, producing green steam for use at the facility. The project also calls for the installation of a new electricity turbine that will be driven by this steam. The turbine will increase the Temiscaming facility's green electricity production capacity from its current 10 megawatts to, eventually, 60 megawatts. The boiler is scheduled to start up in December 2013, followed by the turbine, in May 2014.

Hydro-Québec will offtake the additional green electricity produced by this turbine under a 25-year contract at $106 MW/hour, indexed with CPI, which will strengthen and stabilize Tembec's revenues through the economic cycle.

Pöyry's assignment, valued at $7.2 million, includes project management and detail engineering design for all disciplines. The project will be executed by Pöyry's office in Montreal.

Once the new equipment is in operation, Tembec expects a four-year return on investment, through new revenues from green electricity, the additional production of 5,000 metric tonnes of specialty cellulose and lower costs.

The new boiler, turbine and emission control equipment will be sized to accommodate Phase 2 of the project, a follow-on investment of $120 million which is currently projected for 2014- 2015. Phase 2 would increase Temiscaming's annual specialty cellulose production capacity by 30,000 metric tonnes, boost green electricity generation by 10 megawatts to attain full turbine capacity, and further reduce operating costs.

Tembec is the world's second leading producer of specialty cellulose.

Tembec announced today a $190-million capital investment to upgrade its specialty cellulose manufacturing facility at Temiscaming, Québec. This investment will increase annual production of green electricity by up to 40 megawatts, reduce sulfur dioxide emissions by 70%, increase Temiscaming’s annual production capacity of specialty cellulose by 5,000 metric tonnes, and make Temiscaming one of the world’s lowest-cost specialty cellulose manufacturing facilities.

This project is the first phase of a two-phase investment plan for the facility. It will involve the replacement of three old boilers with a new high-pressure boiler designed to burn waste sulfite liquor, a co-product of the specialty cellulose manufacturing process, producing green steam for use at the facility. The project also calls for the installation of a new electricity turbine that will be driven by this steam. The turbine
will increase the Temiscaming facility's green electricity production capacity from its current 10 megawatts to, eventually, 60 megawatts. The boiler is scheduled to start up in December 2013, followed by the turbine, in May 2014.

Hydro-Québec will offtake the additional green electricity produced by this turbine under a 25-year contract at $106 MW/hour, indexed with CPI, which will strengthen and stabilize Tembec’s revenues through the economic cycle.

The $190-million investment in Phase 1 will be financed with $105 million of new debt, which includes a $75-million loan from Investissement Québec; the balance of $85 million will come from free cash flow from Tembec operations.

“This game-changing project for Tembec will make Temiscaming one of the most competitive mills in the global pulp and paper market. I want to acknowledge the critical support of the Québec Government, through Investissement Québec, and the continuing commitment of our employees to remaining competitive,” stated James Lopez, Tembec’s President and Chief Executive Officer.

“This exciting project shows Québec’s commitment to supporting its regional resource-based industries, and helping them compete on the world stage. By working together proactively with local governments and Investissement Québec, we are pleased to reinforce Tembec’s leadership position in specialty cellulose, a growing and sustainable industry,” stated Québec Premier Jean Charest.

Once the new equipment is in operation, Tembec expects a four-year return on investment, through new revenues from green electricity, the additional production of 5,000 metric tonnes of specialty cellulose and lower costs. Tembec’s management expects the project will reach an annual run-rate EBITDA (earnings before interest, taxes, depreciation and amortization) contribution of approximately $40—$45 million by fiscal year 2015 assuming implementation as scheduled and planned.

The new boiler, turbine and emission control equipment will be sized to accommodate Phase 2 of the project, a follow-on investment of $120 million which is currently projected for 2014- 2015, Phase 2 would increase Temiscaming’s annual specialty cellulose production capacity by 30,000 metric tonnes, boost green electricity generation by 10 megawatts to attain full turbine capacity, and further reduce operating costs.

Tembec is the world’s second leading producer of specialty cellulose

Refined from wood pulp, specialty cellulose is a component of products in the pharmaceuticals, food, cosmetics, personal care, construction and electronics industries, among others. It is a high margin business, growing in the range of 4% to 5% per year, and enjoys more stable demand than forest product commodities.

Tembec’s combined investment of $310 million in the Temiscaming specialty cellulose facility – $190 million in Phase 1, and $120 million in Phase 2 – will be one of the largest in the forest products industry in many years. It will further reinforce Tembec’s position as the world’s second leading producer of specialty cellulose.

The overall project will increase Tembec’s annual production capacity of specialty cellulose from the current 310,000 metric tonnes to 345,000 metric tonnes. The Temiscaming facility’s production capacity will increase from the current 160,000 metric tonnes to 195,000 metric tonnes. Tembec’s Tartas, France, specialty cellulose facility has a current production capacity of 150,000 metric tonnes.

Tembec’s new 25-year power contract with Hydro-Québec

Tembec’s limited partnership, Tembec Energy L.P., has entered into a long-term power purchase contract with Hydro-Québec acting through its Hydro-Québec Distribution division. The agreement will allow Tembec to sell to Hydro-Québec, for a 25-year term, up to 50 megawatts of the electricity generated by a new turbine to be installed at its Temiscaming mill at green energy rates of $106 MW/hour, indexed with CPI.

Tembec’s loan agreement with Investissement Québec

In connection with the project, Tembec has also entered into a $75-million loan with Investissement Québec, a governmental agency, which will be used to finance a portion of the total cost of the project which is currently estimated at $190 million. The loan bears interest at a rate of 5.5% compounded yearly and is secured by a second priority charge over the project’s assets. The loan shall be reimbursed in equal monthly payments over a period of 12 years starting 36 months after the initial loan disbursement and is subject to compliance with certain covenants and undertakings customary with such types of loans. Under this loan, Tembec has also agreed to grant to Investissement Québec a five-year option to purchase three million common shares of Tembec at a price of $7 per share.

Tembec is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France. With annual sales of approximately $2 billion, Tembec has 4,000 employees and is listed on the TSX (TMB).

Pöyry's Energy business group has been awarded the detail engineering and procurement assistance support contract for a 190 million CAD capital investment (Phase 1) to upgrade the specialty cellulose manufacturing facility of Tembec in Temiscaming, Quebec, Canada. 

The installation of a new waste liquor recovery boiler and turbo generator will increase the annual green electricity production by up to 40 megawatts and reduce sulfur dioxide emissions by 70 percent. It is expected that the boiler will be operational in December 2013, followed by the turbo-generator in May 2014.

Pöyry's assignment includes project management and detail engineering design for all disciplines. The project will be executed by Pöyry's office in Montreal, Canada. The contract value is CAD 7.2 million (EUR 5.5 million).

PÖYRY PLC

Two Tembec employees from Kapuskasing operations, Chad McQuade, area forestry technician and Daniel Simis, area forester died in a helicopter crash last Thursday 3rd Nov, in Northern Ontario, during a forest survey. The pilot of the contracted helicopter also died.

“It is a very sad time for all of us at Tembec. We wish to express our sincere condolences to the families, friends and co-workers. Our thoughts and prayers go to every member of these families who have lost their loved ones,” said President and Chief Executive Officer James Lopez.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company’s principal operations are located in Canada and France. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.

Tembec has announced that that Pine Falls Development Corporation (PFDC) has acquired the Tembec Pine Falls, Manitoba mill property and assets. PFDC is an investment project of NRI Global Inc., a company that acquires and manages assets throughout North America.

The site is being sold for nominal net proceeds and the transaction will not impact the Company’s financial results as its carrying value had been reduced when the newsprint mill located on site was permanently idled.

The Tembec Pine Falls facility ceased production in September 2009. Permanent closure was announced in 2010. Tembec will transfer the site to PFDC who has finalized a plan to remediate the site in an approach that allows for investment recovery, site redevelopment and assured environmental closure.

NRI Global is a private investment firm that acquires distressed or impaired assets. NRI Global has offices in Toronto, Ontario and Buffalo, New York. The firm specializes in pulp and paper, energy, and resource transactions in North America. NRI Global and its subsidiary companies have operational expertise in finance, environmental remediation, site redevelopment, industrial services and trade.

For more information about PFDC, visit www.pinefallsdevelopment.com.

Tembec Executive Vice President and President, Paper and High-Yield Pulp Group, Chris Black announced the appointment of Ken Duffy to the role of Vice President of Sales for the High-Yield Pulp.

Reporting to Chris Black, Ken will be responsible for directing the sales activities for the High-Yield pulp mills in order to maximize contribution margins while ensuring the achievement of short and long range profit and growth objectives. Reporting to Mr. Duffy will be Jorg Bruschweiler, Director of Sales, Paper Pulp, Europe; Tiean Huang, Chief Representative and General Manager, Beijing Office, China and Lisa Guimont, Customer Service Coordinator. Various agents throughout the Tembec High-Yield Pulp network will also coordinate their sales activities through Mr. Duffy.

Ken has over 20 years of sales and marketing experience selling to the pulp and paper industry. His experience consists of specialty chemical solutions for pulp and paper mills, including managing corporate contracts for multi-national client organizations and over 10 years of sales management experience. Ken has a Chemical Engineering degree from the University of Toronto.

The Tembec Paper Group is proud to announce the official launch of its new, whiter shade Kallima^® FSC Certified Coated Cover paperboard products. This latest product enhancement is a result of Tembec’s continual investment into its manufacturing processes and facilities, and an unwavering commitment to providing customers with superior quality products.

The upgraded line-up sees Kallima^® Coated Cover offered in a new, bluer-white shade while retaining all the physical target properties that deliver its superior printability and reliable runnability. The development of the new, bluer-white shade translates into important additional benefits to commercial print, graphic design and end-user customers ̶ a greater scope of projects and applications; richer, vibrant colors; and superior print gloss performance.

The new, whiter coated cover collection maintains its basis weight advantage and still offers savings of up to 20% over competing products ̶ giving print projects the presence, feel and stiffness at significantly reduced costs. Printability, runnability, savings, and complete creative versatility make Kallima^® Coated Cover an ideal choice for a vast range of commercial printing applications, from greeting cards to brochures, magazines, book covers, menus, folders, posters, POP displays and direct mail.

Kallima^® C1S, C1S Plus and C2S is available in heatset/web rolls and sheets (cartons and skids), as well as in formats specifically designed for digital presses. Kallima^® Coated Cover is fully compatible with post press production effects such as die cutting, UV and aqueous coating, folding, scoring, embossing, debossing and foil stamping. All Kallima^® Coated Cover products are FSC certified and are available with 10% recycled content upon request.

Tembec reached a settlement with its Matane high-yield pulp mill employees who, last night, voted to end the strike. Employees will return to work gradually as of August 22 and operations are expected to resume on September 11. Production at this plant has been suspended since May 10, 2011.

The settlement covers a 7-year agreement that will expire in October 2016.

The plant in Matane employs 143 people, of which 99 are unionized and ships to customers in North America, Europe and Asia. Its production capacity is 250,000 tonnes per annum.

Tembec announced today the permanent closure of its Taschereau sawmill. The facility has been idle since October 2009. The closure is necessitated by the reality that there is insufficient sustainable timber supply to operate all of Tembec’s sawmills in the Abitibi-Témiscamingue region.

“The closure we are announcing today is necessary to insure the long term viability of the Bearn and La Sarre sawmills,” stated Dennis Rounsville, Executive Vice President and President of the Tembec Forest Products Group. “Sawmills must have the necessary fibre supply to facilitate cost effective operations and justify the capital investments required to survive in an increasingly competitive market,” he said.

Tembec has presented a plan to the Province of Quebec for a new approach to the distribution of timber volumes that will enable the Company to strengthen its operations in the Abitibi-Témiscamingue region and provide more stable and continuous employment.

Tembec will work with the affected employees to minimize the impact of the closure, including potential transfers to other Tembec operations. A community adjustment fund will be established with the Municipality of Taschereau.

As a result of the Taschereau closure, Tembec will record a non-recurring charge of $2 million in the March 2011 quarter.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company’s principal operations are located in Canada and France. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.

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 fuelled 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.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company’s principal operations are located in Canada and in France. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.