LONGUEUIL, QC, June 17 /CNW Telbec/ - SFK Pulp today announced that it
has entered into agreements with AbitibiBowater and other suppliers to secure
a short-term supply of wood fibre for its Saint-Félicien Mill. "Negotiations
are continuing to establish long-term agreements with our suppliers," declared
Pierre Gabriel Côté, SFK Pulp's President and Chief Executive Officer.
As announced in recent communications, SFK Pulp was working closely with
the Québec government to identify appropriate financial assistance. SFK Pulp
announces that the Québec government has turned down its request for
assistance. "We are disappointed with the Québec government's response to
which we had filed an application for assistance backed by a solid business
plan," continued Mr. Côté.
"The situation remains difficult, given the market price for wood fibre
in Québec, the market price for NBSK pulp, the strength of the Canadian dollar
and the decline in global demand for pulp. We continue to take every necessary
steps to handle these challenges," concluded Mr. Côté.
The SFK Pulp mill in Saint-Félicien consumes over 740,000 metric tonnes
of wood chips per year and plays a key role as a wood fibre integrator in
Saguenay-Lac-Saint-Jean. It is a major economic pillar in this region,
generating over 300 direct jobs and, with its economic activities, supporting
1,850 indirect jobs in sawmills, logging and other operations.
About SFK Pulp
SFK Pulp (TSX: SFK.UN), a leading producer and marketer of premium virgin
and recycled kraft pulp, operates three mills in Saint-Félicien, Québec,
Fairmont, West Virginia, and Menominee, Michigan. SFK Pulp employs
approximately 550 people, and has a total annual production capacity of
745,000 metric tonnes. The Saint-Félicien Mill supplies northern bleached
softwood kraft (NBSK) pulp to various sectors of the paper industry in Canada,
the United States and Europe for use in specialty products. The Fairmont and
Menominee Mills manufacture air-dried market recycled bleached kraft (RBK)
pulp and primarily supply manufacturers of uncoated freesheet, commercial and
away-from-home tissue and coated paper in the U.S.
For further information:
For further information: Investors and Analysts: Mrs. Patsie Ducharme,
SFK Pulp, Vice-President and Chief Financial Officer, (450) 677-7857, ext.
2225; Media and others: Mr. Dany Paradis, SFK Pulp, Vice-President, Change
Management and Public Affairs, (450) 677-7857, ext. 2227; Mr. Rick Leckner,
MaisonBrison, (514) 731-0000, ext. 222