Ontario Strengthens Local Forest Industry



    McGuinty Government Investment To Create New Jobs in Harcourt

    TORONTO, Aug. 13 /CNW/ -

    NEWS

    Ontario is strengthening the local forest industry by helping Greenview
Wood Products restart a sawmill and set up a cogeneration operation in
Harcourt, a town in the Haliburton Highlands.
    The Ministry of Natural Resources is supporting Greenview by providing a
$1.56 million grant and a loan guarantee of $2.4 million towards the
$12.3-million project through the Forest Sector Prosperity Fund and Loan
Guarantee program. The funding will help restart a pallet wood sawmill and
establish a four megawatt biofibre cogeneration system for use by the mill.
The mill and cogeneration operation will create about 30 high-value jobs.
    Ontario's Forest Sector Prosperity Fund and Loan Guarantee Program are
part of the McGuinty government's over $1-billion plan to help forest
companies invest in the future of their business and the prosperity of local
communities.

    QUOTES

    "Our government has the right plan to strengthen Ontario's forest
industry," said Natural Resources Minister Donna Cansfield
(http://www.mnr.gov.on.ca/en/About/2ColumnSubPage/226953.html). "We're
supporting the local economy, helping to create good jobs in Harcourt and
boosting a sector that directly benefits northern and rural communities which
depend on forestry as a way of life."

    "We look forward to beginning our operations in Harcourt," said Frank
Yantha, President of Greenview Wood Products. "The contribution from the
government was a key factor in our decision to move ahead with this initiative
and a stepping stone for future expansion."

    
    QUICK FACTS

    -   The McGuinty government has committed over $1 billion in various
        programs over five years to increase the competitiveness of Ontario's
        forest industry.

    -   More than $376 million in new forest sector investment is already
        underway and 4,800 jobs have been created or saved.

    -   Cogeneration is an electrical energy generation technology which uses
        the combined production of electricity and useful heat from a single
        fuel source, such as mill residues.

    LEARN MORE

    -   Find out more about Ontario's forests
(http://www.mnr.gov.on.ca/en/Business/Forests/index.html)
(ontario.ca/forests).

    -   Learn more about Forest Sector Competitiveness programs
(http://www.mnr.gov.on.ca/en/Business/Forests/2ColumnSubPage/STEL02_167196.htm
l).

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                                           ontario.ca/natural-resources-news
                                                      Disponible en français


    BACKGROUNDER
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                 SAWMILL RESTART AND COGENERATION IN HARCOURT
    

    The $1.56 million grant and $2.4 million loan guarantee for Greenview
Wood Products is part of $75 million the Ontario government has announced for
20 projects under the Prosperity Fund and Loan Guarantee Program. These
projects are generating nearly $376 million in new forest sector investment
and creating or saving 4,800 jobs.

    
    The most recent offers include:
    -   More than $300,000 to support Columbia Forests Products' installation
        of over $3 million in new equipment at its Hearst plywood mill.
    -   A $5 million loan guarantee and a grant of $700,000 to Haavaldsrud
        towards the installation of a new $7-million saw line at its
        Hornepayne facility.
    -   A grant of $320,000 to Niska North to support the establishment of a
        cedar sawmill in Chapleau.

    Forest Sector Competitiveness

    The McGuinty government is investing more than $1 billion over five years
through various programs to increase the competitiveness of Ontario's forest
industry. Since June 2005, these programs have been stimulating new forest
sector investments in value-added manufacturing and co-generation, helping the
industry reposition itself in the global marketplace.

    The Ontario government's investments include:
    -   $350 million in loan guarantees to stimulate new investment in value-
        added manufacturing, energy conservation and energy co-generation
    -   $150 million over three years in conditional grants to support new
        capital investments
    -   $140 million in electricity rebates for Northern pulp and paper mills
    -   $75 million annually for the construction and maintenance costs of
        primary and secondary forest access roads
    -   $70 million in a one-time stumpage fee refund in 2005/06
    -   $10 million per year to enhance the Forest Resource Inventory
    -   $6 million estimated value of reduction in stumpage rate for poplar
        hardwood for 2008/09
    -   $3 million a year from 2006 to 2008 to reduce timber fees for poplar
        veneer and white birch
    -   $1 million per year in an Ontario Wood Promotion program to enhance
        value-added manufacturing.

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    Bill Kissick,                          ontario.ca/natural-resources-news
    Forest Competitiveness Secretariat,               Disponible en français
    (705) 945-6767
    





For further information:

For further information: Stefanie Millon, Minister's Office, (416)
314-2198; Barry Radford, Communications Services Branch, (416) 314-0652

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Ontario Ministry of Natural Resources

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