MONTREAL, May 13 /CNW Telbec/ - Société générale de financement du Québec (SGF) announces its intention to invest US$75 million in SKF Pulp Fund (TSX: SFK.UN) to help the company improve its balance sheet, but mostly, ensure its long-term development. The transaction, which remains subject to certain conditions, will take the form of a five-year secured term loan.
SFK Pulp, a leader in the production and distribution of high-quality virgin and recycled kraft pulp, operates three plants located in Saint-Félicien (Québec), Fairmont (West Virginia) and Menominee (Michigan). The Saint-Félicien plant provides Northern Bleached Softwood Kraft pulp (known as NBSK pulp) to various paper industry sectors in Canada, the United States and Europe for the production of specialized products.
The Saint-Félicien plant, which uses the most softwood chips in Québec, is an important link in the forest sector's value chain. "We are thrilled to support SFK, an important company for Québec's forest sector. This investment ensures the continuity of direct and indirect jobs in Québec, more specifically in the Saguenay-Lac-Saint-Jean region. There are about 300 employees working in the Saint-Félicien plant and close to 15 in the Longueuil administrative offices," said Pierre Shedleur, SGF President and General Manager.
Mindful of the environment, SFK Pulp has adopted a social responsibility policy to mitigate the environmental impact of its operations. Therefore, the manufacturing processes and equipment used by SFK rely on a proven technology that has been established in the pulp and paper industry for several years.
Société générale de financement du Québec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred shares.
SOURCE SOCIETE GENERALE DE FINANCEMENT DU QUEBEC
For further information: For further information: Sophie Alarie, Senior Advisor, Communications and Public Relations, (514) 876-9368