TEMISCAMING, QC, Aug. 22 /CNW Telbec/ - Tembec today announced that it
has completed the acquisition of the assets of Chapleau Cogeneration Limited
located in Chapleau, Ontario. The transaction closed on August 15 and includes
a biomass fired boiler and steam turbine with an installed capacity of
7.2 megawatts. Consideration for the assets consists of a series of future
annual payments to 2022, with a present value of approximately $1 million.
With the addition of the Chapleau facility, Tembec's total captive
generating capacity at its facilities in Canada and France now exceeds
150 megawatts, of which 26 megawatts are located in Ontario. All of the
Ontario capacity would be considered "green energy", based on either hydro or
biomass fired generation.
Located adjacent to the Company's Chapleau SPF sawmill, the cogeneration
assets are "a valuable addition to Tembec's operations" said Dennis
Rounsville, Executive Vice President and President of the Forest Products
Since its commissioning in 1985, the cogeneration plant and the sawmill
have been closely linked, with the cogeneration plant receiving most of its
biomass fuel supply directly from the sawmill and, in return, the sawmill
receiving steam for its lumber kilns.
"Given the immediate proximity and the high degree of interdependence
between our sawmill and the cogeneration plant, this is a very logical and
sound acquisition. It is also consistent with our corporate priorities in
terms of increasing the amount of electricity produced internally and reducing
our reliance on purchased energy in all forms" said Mr. Rounsville. ''We have
a solid fibre base, good sawmill assets and a productive workforce at
Chapleau. This acquisition will contribute to a further strengthening of the
competitive position of an already good operation."
The 12 unionized and 2 staff employees of the cogeneration operation will
continue in their current roles as part of the acquisition.
Tembec is a large, diversified and integrated forest products company.
With operations principally located in North America and in France, the
Company employs approximately 9,000 people. Tembec's common shares are listed
on the Toronto Stock Exchange under the symbol TBC. Additional information on
Tembec is available on its website at www.tembec.com
This press release includes "forward-looking statements" within the
meaning of securities laws. Such statements relate to the Company's or
management's objectives, projections, estimates, expectations, or predictions
of the future and can be identified by words such as "anticipate", "estimate",
"expect" and "project" or variations of such words. These statements are based
on certain assumptions and analyses by the Company that reflect its experience
and its understanding of future developments. Such statements are subject to a
number of uncertainties, including, but not limited to, changes in foreign
exchange rates, product selling prices, raw material and operating costs, and
other factors identified in the Company's periodic filings with securities
regulatory authorities in Canada and the United States. Many of these
uncertainties are beyond the Company's control and, therefore, may cause
actual actions or results to differ from those expressed or implied herein.
The Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: John Valley, Executive Vice President, Business
Development and Corporate Affairs, (416) 864-7502; Tracy Dottori, Corporate
Manager, Organizational Development, (819) 627-4591