Displaying items by tag: canada

BC Hydro is pleased to announce that it is now purchasing clean electricity from the Zellstoff Celgar's Green Energy Project as a result of a series of upgrades that allow the pulp mill to direct more steam to energy production. A new 48-megawatt condensing turbine is now generating electricity for use in the BC Hydro power grid. Once the turbine is fully optimized, the pulp mill will produce enough surplus electricity to power the equivalent of 20,000 homes in B.C.

The Zellstoff Celgar mill's cogeneration facility will produce 238 gigawatt hours of electricity annually for sale to BC Hydro under the terms of a 10-year electricity purchase agreement that was completed as part of BC Hydro's Phase 1 Bioenergy Call. The new clean energy generating capacity at the Zellstoff Celgar mill was made possible through a series of upgrades funded by $40 million from Natural Resources Canada’s Pulp and Paper Green Transformation Program and $17 million from Mercer International, Zellstoff Celgar's parent company.

"Because of Zellstoff Celgar's creative thinking and programs like this offered by BC Hydro, workers in the West Kootenay will continue to have jobs and a mill that will support the local economy," said Minister of Energy Bill Bennett. "I believe that renewable energy like this, its generation and the technology and knowledge around it, is a key to a prosperous future for British Columbia."

The investments at the mill include upgrading the wood waste boiler and installing a new condensing turbine and other steam-saving equipment to allow the mill to generate energy surplus to its own needs that it can sell to BC Hydro. The mill generates the steam it uses for its operations by burning wood waste and black liquor, a byproduct of the pulp-making process.

"At BC Hydro, we are committed to powering B.C. with clean, reliable electricity and projects like Zellstoff Celgar's will help us deliver on our goals for generations," said BC Hydro President and CEO Dave Cobb. "Clean energy projects also support economic development opportunities throughout B.C. and we commend Zellstoff Celgar on their upgrades which support both business viability and the local community."

Bioenergy is energy that can be generated using wood waste, forest-based biomass and organic material in regions all across the province, helping to diversify rural economies. In total, BC Hydro's Phase 1 Bioenergy Call will enable BC Hydro to purchase approximately 579 gigawatt hours annually – enough to power more than 52,000 homes – from four projects. In addition to the electricity purchase agreement with Zellstoff Celgar, BC Hydro has agreements with Canfor Pulp Ltd. Partnership in Prince George; PG Interior to Waste to Energy Ltd. in Prince George; and Domtar Pulp and Paper Product Inc. in Kamloops.

For more information, please contact:

Jennifer Young
Media Relations
Phone: 001 604 623 4376
Cell: 001 604 240 0553

The Government of Canada has launched a $100-million Investments in Forest Industry Transformation (IFIT) program to help expand opportunities for Canada's forestry sector through the development of innovative projects and technologies. Stockwell Day, president of the Treasury Board, Minister for the Pacific Gateway and Minister Responsible for British Columbia, launched the program in Vancouver and made a call for proposals that could receive IFIT funding.

The purpose of the IFIT program, which was first introduced in Canada's Jobs and Growth Budget 2010, is to demonstrate and deploy new and advanced technologies in the forest sector through investments in innovative processes. Forest sector companies that have existing facilities in Canada, including those that have been recently affected by the global economic downturn, could be eligible for IFIT support.

The Forest Products Association of Canada (FPAC) commended the Canadian government on the IFIT program. "Today's announcement makes it clear that the Canadian government understands that jobs in the forest industry can only be secured through transformation and that they are ready to play their part," said Avrim Lazar, president and CEO of FPAC.

According to FPAC, forest sector companies that have existing facilities in Canada, including those that have been recently shut down, could be eligible for IFIT support.

This program is consistent with Canada's international trade obligations, including the Softwood Lumber Agreement. Any costs associated with the production or export of softwood lumber products are not eligible under the IFIT program.

The announcement on Aug. 2 opened the first call for proposals under the IFIT program. Individuals interested in learning how to apply for funding under the Investments in Forest Industry Transformation program should visit: forest-transformation.nrcan.gc.ca.

Recent references in media coverage of $300 million of investment related to ratification of new collective agreement in Temiscaming, Quebec inaccurate and misleading

Tembec today issued a statement to clarify inaccurate information contained in newspaper articles related to the ratification of a new collective agreement with employees at operations in Temiscaming, Quebec. The coverage quoted a senior Union official as referencing a commitment to an investment program of $300 million. The Company agrees that any continuation of the concessions agreed to in the collective agreement beyond July 1, 2012 is conditional on significant future investments. However, no specific dollar amounts are referenced in the agreement.

The Company is in the process of evaluating a number of options for capital upgrades to the site aimed at maintaining and enhancing its long term competitiveness. Once this evaluation is completed, options will be brought forward to the Company’s Board of Directors. Mill capital investment plans normally span a 5 to 10 year period.

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.

This press release includes “forward-looking statements” within the meaning of securities laws. Such statements relate to the Company’s or management’s objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as “will”, “anticipate”, “estimate”, “expect” and “project” or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments and may not be appropriate for any purposes other than what is stated herein. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.
Information:

John Valley
Executive Vice President, Business Development and Corporate Affairs
Tel.: 416-775-2819
This email address is being protected from spambots. You need JavaScript enabled to view it.

Michel J. Dumas
Executive Vice President, Finance and Chief Financial Officer
Tel.: 819-627-4268
This email address is being protected from spambots. You need JavaScript enabled to view it.

Kruger Inc. will cease coated and supercalendered paper production at the Trois-Rivières Mill and extend the interruption of directory paper production at the Wayagamack Mill for an indefinite period of time.

The company cites persistently unfavourable market conditions and the strong Canadian dollar as reasons for these decisions.

At the Trois-Rivières mill, the No. 1 (coated paper) and No. 6 (supercalendered paper) paper machines, and the No. 8 coating machine will be shut down indefinitely, effective June 11, 2010.

This measure will affect approximately 320 employees in production, maintenance and administration. The mill, however, will continue to produce newsprint, employing almost 300 people.

The No. 3 machine at the Kruger Wayagamack mill, which had stopped making directory paper on December 31 and was to resume operations in June, will be idled indefinitely. The extended shutdown will affect approximately 120 employees. However, the mill will maintain coated paper production, which means continued employment for more than 350 employees.

Kruger Inc. is a major producer of publication papers, tissue, lumber and other wood products, corrugated cartons from recycled fibres, green and renewable energy, and wines and spirits.

Kruger Inc. and its subsidiaries today announced that they will cease coated and supercalendered paper production at the Trois-Rivières Mill and extend the interruption of directory paper production at the Wayagamack Mill for an indefinite period of time.

At the Trois-Rivières Mill, the No. 1 (coated paper) and No. 6 (supercalendered paper) Paper Machines, and the No. 8 Coating Machine will be shut down indefinitely, effective June 11, 2010. This measure will affect approximately 320 employees in Production, Maintenance and Administration. The mill, however, will continue to produce newsprint with close to 300 jobs maintained.

The No. 3 Machine at the Kruger Wayagamack Mill, which had stopped making directory paper on December 31 and was to resume operations in June, will be idled indefinitely. The extended shutdown will affect approximately 120 employees. However, the mill will maintain coated paper production, which means continued employment for over 350 employees.

Kruger came to these decisions due to persistently unfavourable market conditions and the strong Canadian dollar.

Founded in 1904, Kruger Inc., directly and through its subsidiaries, is a major producer of publication papers, tissue, lumber and other wood products, corrugated cartons from recycled fibres, green and renewable energy and wines and spirits. It is also a leader in paper and paperboard recycling in North America. Kruger operates facilities in Quebec, Ontario, British Columbia, Newfoundland and Labrador and the United States.

INFORMATION:
Jean Majeau
Senior Vice President
Corporate Affairs and Communications
Tel.: (514) 343-3213
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.kruger.com

Fortress Paper Ltd. ("Fortress Paper" or the "Corporation") announced today that it has signed, through its wholly-owned subsidiary, Fortress Specialty Cellulose Inc. ("FSC"), an Energy Supply Agreement (the "Agreement") with Hydro Québec for the sale of green electricity to be produced at the Thurso Mill upon completion of a biomass-based cogeneration facility.

Under the Agreement, the Company will construct a cogeneration facility to provide net 18.8 megawatts of green power to Hydro Québec over a 15 year term, with deliveries estimated to commence in the fourth quarter of 2012.

Chadwick Wasilenkoff, CEO of Fortress Paper, states, "The signing of the Agreement represents an important step in achieving our business plan at the Thurso Mill, which includes the building of a cogeneration plant that produces green electricity that in turn will ultimately benefit Québec residents. We believe that the results of this partnership with Hydro Québec will be beneficial to the environment and the economy of Québec, as well as providing net energy savings (income) to Fortress Paper."

The Agreement is subject to final approval by the Régie de l'énergie in Québec which is expected to be received in the third quarter of 2010.

Newsprint producer AbitibiBowater is asking the bankruptcy court for approval to sell four closed mills and their machinery to Montreal-based American Iron & Metal, according to a Canadian Press news report on April 19.

The scrap metal company would buy to assets for $8.7 million. The deal includes the mills at Beaupre, Que., Donnacona, Que., Thunder Bay, Ont., and Dalhousie, N.B. CP reports that American Iron would also pay AbitibiBowater 40% of the money raised from the sale of the paper machines. Even if they are sold for scrap, American Iron would pay at least $5 million.

The metals company would assume all environmental liabilities associated with the closed mills. The company has said it's open to ideas to reuse the vacant mills, but one condition set by AbitibiBowater is that the locations not be used to produce paper.

American Iron's owner Herbert Black told CP the buildings may be scrapped for their metal value, and some of the paper machines may suffer the same fate.

AbitibiBowater is also looking to sell three closed mills in Quebec. The mills in Roberval, Saint-Fulgence and Lebel-sur-Quevillon have been closed since last year.

North America's largest newsprint producer hopes to exit court protection from creditors in Canada and the United States by autumn.

The Mackenzie pulp mill in British Columbia has been acquired by Paper Excellence B.V., for an undisclosed sum. The transaction secures the future of the mill which is expected to resume production of high quality NBSK pulp in the fall. The Mackenzie mill employs over 240 workers and will generate significant additional economic activity and jobs within the region.

Paper Excellence B.V. is a Netherland-based company associated with one of the world's largest pulp and paper producers of Asia Pulp and Paper brands.

This Mackenzie mill is the Paper Excellence Group's second acquisition in Canada. It currently owns and operates a pulp mill in Meadow Lake, Saskatchewan.

"We are very pleased to have a company like Paper Excellence establish itself in British Columbia," says Pat Bell, Minister of Forests and Range. "It already has experience in Canada with its mill in Meadow Lake and the company has maintained a high level of safe profitable production and regulatory compliance."

It took a concerted effort by a number of organizations and groups to get the mill to the point where it could resume production. Team Mackenzie of the Mackenzie Pulp Mill Development Corporation preserved the capacity of the mill to resume production. The Provincial Government worked with the District of Mackenzie to consolidate and reduce the debt of the mill.

"I want to credit the hard working public servants in the Rural BC Secretariat for the instrumental role they played in crafting a deal that will ensure hundreds of people in Mackenzie can head back to work," said B.C. Community and Rural Development Minister Bill Bennett. "It is personally gratifying to be able to help the District of Mackenzie at a time when the people of Mackenzie really need it."

The McLeod Lake Indian Band worked with the Ministry of Forests and Range to help secure the fibre needed to start the mill.

"We are very pleased that we have been able to work with the government and the community and be part of the effort to bring the mill back into production," says Chief Derek Orr of the McLeod Lake Indian Band. "By working together we can provide benefits for the entire region."

Also important was the negotiation of a new collective agreement with the Communications, Energy and Paperworkers Union (CEP). The agreement preserves wages, benefits and pensions, while enabling the mill to reopen with significant cost reductions.

"This is very good news for our members and for the community of Mackenzie," says CEP Western Region Vice President Jim Britton. "We are extremely happy to see our members return to well paying jobs within the forest industry and that it looks like they have a future in this industry."

Catalyst Paper and the City of Powell River have inked an agreement in principle to achieve the twin objectives of reducing the Class 4 property tax rate paid by the company's Powell River mill while assisting the City in reducing significantly its capital expenditures for future municipal service infrastructure.

"Council committed to looking for solutions to the major industry property tax in Powell River,"
said Mayor Stewart Alsgard. "We have held frank, realistic discussions with Catalyst culminating in a very positive outcome that reflects the needs of the community and provides for a way forward under challenging circumstances."

Under the agreement, the City has committed that the company's annual property taxes payable to the City will not exceed $2.25 million for five years. In addition, the City and Catalyst agreed to jointly pursue environmental permit amendments and related arrangements that would enable a 20-year service agreement valued at $750,000 annually in the first five years, under which Catalyst will treat the City's liquid waste using the mill's effluent system and burn the City's bio-solids in the mill's waste wood boiler.

"We saw that we both had a cost problem associated with municipal services. And we came to a shared conclusion that, going forward, the City's circumstances could be addressed more cost-efficiently by making our mill infrastructure available for municipal use," said Richard Garneau, Catalyst president and chief executive officer. "Cooperation and flexibility helped us take a big step toward the $1.5 million property tax goal, and together the City and Catalyst were able to find a solution that's right for Powell River."

The agreement will see Catalyst drop its legal appeal of the City's 2009 municipal tax levy and pay into trust $2.5 million in outstanding 2009 municipal property taxes including penalties and interest, pending the City's completion of arrangements for implementing its 2010 business plan with the provincial government. Related commitments by the company include sale to the City of the mill's unoccupied administration office building and associated lands for a nominal price, and a four-year mortgage extension to PRSC LLP, a three-way partnership with the City and Tla'Amin First Nation formed in 2006 to facilitate local economic diversification through land sales.

The City and Catalyst will also explore a variety of joint economic development initiatives and a revenue upside contribution arrangement, capped at $500,000 annually, based on the Powell River paper mill's ability to achieve a return on capital employed in excess of 10%.

Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With six facilities located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 2.5 million tonnes. The company is headquartered in Richmond, British Columbia, Canada and its common shares trade on the Toronto Stock Exchange under the symbol CTL. Catalyst is listed on the Jantzi Social Index® and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.

Located on the Sunshine coast 125 km north of Vancouver, Powell River is a vibrant and progressive community of approximately 13,500 with access to Vancouver, Vancouver Island and the Sechelt Peninsula. Powell River has an extensive variety of recreational activities and festivals, excellent schools, a modern multi-purpose recreational complex, golf course, new hospital and an active arts community. With something for everyone, Powell River has a high quality of life in a natural and beautiful environment.

For more information:

Lyn Brown
Vice President, Corporate Relations
Catalyst Paper Corporation
604-247-4713

Stan Westby, CA
Chief Administrative Officer
City of Powell River
604-485-8618

Newfoundland and Labrador's environmental claims against insolvent AbitibiBowater Inc. have been stayed by a Quebec judge, removing a likely hurdle to the company's restructuring process.

The claims, which would have required AbitibiBowater to clean up five sites that it owns or once owned, could have cost hundreds of millions of dollars. Newfoundland wanted them treated like claims from other creditors under the Company Creditors Arrangement Act and therefore eligible for available money.

In dismissing Newfoundland and Labrador's motion, Quebec Superior Court Justice Clement Gascon urged both sides to find "an appropriate forum" in which to settle their differences. The company has been under creditor protection since last April.

source: canada.com Canwest News Service
Judge dismisses Newfoundland's claims against AbitibiBowater