SDEIC and its Partners Announce The Asset Sale of Papiers Gaspésia

    CHANDLER, QC, Dec. 21 /CNW Telbec/ - The intense efforts of the past few
years to relaunch Papiers Gaspésia have been in vain as no takers were found
to re-open the mill. As a result, Société de développement économique et
industriel de Chandler (SDEIC) and its partners have accepted Vantek
Incorporated's offer to purchase.
    Valued at US$40 million, this transaction will allow Vantek to purchase
the Papiers Gaspésia mill and all its equipment. In the coming months Vantek
plans to sell the main equipment and dismantle the buildings on the main site.
    The transaction is good for the City of Chandler, which gets to keep all
the Papiers Gaspésia land. The deal will generate liquidities in the order of
some million dollars that will be invested in an economic development fund to
finance new projects in the region.
    "We worked tirelessly to create scenarios that would allow the company to
reopen but we had no success. After four years of trying, the Vantek offer is
the best under the circumstances. It will give us all the latitude we need to
redevelop the Gaspésia land, and in this regard, all the citizens of Chandler
will benefit. We're turning an important page in our history and we're
optimistic as regards future projects," stated President of SDEIC and Chandler
Mayor Claude Cyr.
    Vantek's offer, which would have expired within the next few days, has
received the backing and support of all of Papiers Gaspésia's financial
partners; namely, Société générale de financement du Québec, Solidarity Fund
QFL, Tembec and Investissement Québec. All the players dedicated themselves
wholeheartedly to this matter and gave SDEIC the help it needed to conclude
this transaction, which under the circumstances, is the best for the city of
Chandler and the region.
    The projects submitted in the past few days to use a part of the Gaspésia
buildings and equipment with a view to producing and exporting paper pulp were
considered and analyzed. Unfortunately, the promoters were not able to provide
sufficient guarantees that their projects would come to fruition. Under the
circumstances, and in the best interests of the Chandler community, the Vantek
offer had to be accepted.

For further information:

For further information: The following telephone numbers are provided
for the exclusive use of journalists and other media representatives.: Claude
Cyr, Président de la SDEIC, (418) 689-2221; Marie-Claude Lemieux, Conseillère
principale, Communications et relations avec les médias, Société générale de
financement du Québec, (514) 876-9368,; Josée Lagacé,
Conseillère principale aux relations de presse et aux communications, Fonds de
solidarité FTQ, (514) 850-4835,; Michel J. Dumas,
Vice-président exécutif, Finances et chef des finances, Tembec Inc., (819)
627-4268,; Josée Béland, Responsable des
communications Europe, Investissement Québec, (514) 873-6027,

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