One of Canada’s largest pulp and paper mills will undergo a $190-million boiler upgrade that could lead to a large-scale expansion of their dissolving pulp capacity.
According to Pulp and Paper Canada Magazine, Tembec Inc. will replace three aging low-pressure boilers at their Temiscaming site with one new boiler. The change will not only increase the mill’s overall capacity but will also create a new co-generation facility that will see nearly Tembec selling nearly 30-40 megawatts of power to the provincial government of Quebec.
This project is expected to reach completion by December 2013.
In addition to this boiler replacement, Tembec president and CEO James Lopez said the mill is also looking into another 30,000 tonne/yr capacity.
“All the signs are looking very, very positive for the project,” he told investors at a conference in New York.
That expansion could also see the company exporting an additional 10 megwatts of power to the Quebec power grid.
“The $100-million capacity expansion would see the 11 original digesters replaced with 10 new stainless steel vessels,” reported Pulp and Paper Canada.
Tembec plans to invest a significant amount of capital expenditures into increasing their dissolving pulp capacity over the next five years.
“This is by far the most solid business that we have, with the brightest future and the best, most stable margins,” said Lopez.