Tembec secures additional funding for cellulose project at Quebec site
The company expects cogeneration project to improve annual adjusted EBITDA by $48 million.
MONTREAL – Tembec has secured $27.8 million in additional financing to fund a portion of its Temiscaming, Qué, cellulose cogeneration project, bringing total funding to $132.8 million.
The project involves replacing three low-pressure boilers with a single new high-pressure boiler designed to burn waste sulphite liquor generated by the specialty cellulose manufacturing process and the installation of a 50-megawatt electrical turbine.
The boiler portion of the project is scheduled to be complete by April 2014. The turbine should be operational by Sept. 2014.
The company expects the project to improve annual adjusted EBITDA by $48 million. The improvement includes approximately $28 million of incremental electricity revenues, $7 million of operating and maintenance cost reduction and $13 million of productivity and margin enhancements associated with an annual production increase of 15,000 tonnes of specialty cellulose pulp.
Tembec is a manufacturer of forest products including lumber, pulp, paper and specialty cellulose with principal operations in Canada and France. The company employs 3,400 people and annual sales of $2 billion.