Pulp and paper producer Tembec Inc. announced this week they would invest $190 million to upgrade their specialty cellulose plant in Temiscaming, Quebec.
The upgrade will replace three old boilers with a new high-pressure boiler that is designed to burn the waste byproduct of the cellulose manufacturing plant.
The change will not only increase the mill’s overall capacity by 5,000 metric tonnes 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.
Hydro-Quebec signed a 25-year contract with Tembec based on a rate of $106 per megawatt-hour, indexed with the consumer price index reported the Winnipeg Free Press.
This upgrade is what the company is calling phase one of an overall $310-million investment that will take place at the Temiscaming facility over the next several years. Phase two will see Tembec invest another $120 million in 2014-2015 which will raise the plant’s annual production capacity by another 30,000 metric tonnes to 345,000 metric tonnes.
Last October, Tembec president and CEO James Lopez spoke highly of the mill’s future plans.
“This is by far the most solid business that we have, with the brightest future and the best, most stable margins,” Lopez said.
This week, he reiterated his positive outlook calling the company’s plan a “game-changing project” that will make the facility one of the world’s most competitive pulp and paper mills.
Winnipeg Free Press: “Tembec Confirms $190 Million Upgrade Investment In Temiscaming, Que”
Montreal Gazette: “Tembec To Upgrade Quebec Cellulose Plant Capacity”
Pulp and Paper Canada: “Tembec $190-Million Boiler Upgrade Could Lead To Dissolving Pulp Expansion”