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Tembec installs new biomass boiler at Tartas pulp mill in France


   

TEMISCAMING, QC, June 26, 2008 (Press Release) - James Lopez, President and Chief Executive Officer of Tembec, and Yvon Pelletier, Executive Vice President and President of the Pulp Group, are pleased to announce the start-up of a new biomass boiler at the pulp mill in Tartas, France. This Euro 33.8 million investment (C $53 million) will supply 85 tonnes per hour of steam to the pulp mill which produces 155,000 tonnes of specialty cellulose pulp annually. An inauguration ceremony was held in Tartas on June 18, 2008.

"This is an excellent investment that combines good financial returns with sound environmental stewardship. It will improve the efficiency of the mill, lower energy costs and reduce carbon emissions. I am particularly proud of the fact that this project was not just completed within the timelines and budget allotted, but it was done without a significant health and safety incident in over 100,000 man-hours of construction. It was a well-managed project," said James Lopez, President and Chief Executive Officer of Tembec.

The fluidized bed boiler will burn biomass from the industrial process, bark and other harvested wood residuals to produce steam for use in the manufacture of pulp. Natural gas will only be used for start-up.

"I extend my congratulations to the team involved in the construction and start-up of this facility. Our employees have met the challenge, and they deserve our gratitude. The efficiency of the new boiler in its initial start-up phase is already beyond our expectations. As a result of significant technological enhancements over the last few years, this mill contributes positively to the overall Group performance and to the quality of the environment in the region," said Yvon Pelletier, Executive Vice President and President of the Pulp Group.

The new biomass boiler investment involved an innovative partnership with local authorities and the financial support of the Conseil régional d'Aquitaine, le Conseil général des Landes, l'Agence de l'eau Adour Garonne. Further, Tembec benefited from interest-free term loans for the financing of the infrastructure.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. With operations principally located in North America and in France, the Company employs approximately 8,000 people.

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By how much will the credit crunch reduce greenfield mill announcements in the next three years compared with the last three years?
  • No noticeable effect
  • Up to 33% fewer new mills announced
  • Up to 66% fewer new mills announced

  • More than 66% fewer new mills announced

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