SAINT-FELICIEN, QC, Sept. 18 /CNW Telbec/ - SFK Pulp Fund (TSX: SFK.UN)
announced today that it has declared a cash distribution of $0.02 per unit,
payable on October 15, 2007 to unitholders of record at the close of business
on September 28, 2007.
"We are disappointed that we had to reduce the level of distributions.
This reduction is a direct consequence of the continued strengthening of the
Canadian dollar against its US counterpart that deeply impact the Canadian
Forest and Paper industry. Furthermore, the Saint-Félicien mill has
experienced a failure of a component of the main turbo generator for which
management currently estimates that additional repair costs and electricity
purchases of approximately $3.0 million will be incurred in the coming months.
In light of the foregoing and in accordance with its distribution policy, the
board of directors has decided to reduce the distribution level to
$0.02 per unit", said André Bernier, President and Chief Executive Officer of
SFK Pulp operates, through its subsidiaries, the Saint-Félicien Mill, the
Fairmont Mill and the Menominee Mill (with a total annual production capacity
of 735,000 metric tonnes) and employs approximately 550 people. The
Saint-Félicien Mill (located in Saint-Félicien, Québec, approximately 450
kilometres north of Montréal) has an annual production capacity of 375,000
metric tonnes of NBSK pulp and supplies NBSK pulp to various sectors of the
paper industry in Canada, the United States and in Europe for use in
speciality products. The Fairmont Mill (located in Fairmont, West Virginia)
and the Menominee Mill (located in Menominee, Michigan), with a combined
annual production capacity of 360,000 metric tonnes, both manufacture
air-dried market recycled bleached kraft (RBK) pulp and primarily supply RBK
pulp to manufacturers of uncoated freesheet, commercial and away-from-home
tissue and coated paper in the United States.
For further information:
For further information: Investors and Analysts: Mr. Paul Bourque, Chief
Financial Officer, (450) 677-7857 ext. 2224; Media and Others: Ms. Suzanne
Lalande, Optimum Public Relations, (514) 282-4710