Chantiers Chibougamau invests CAD $342 million to restart a Mill in QuebecAll Articles
Nordic Kraft, a new unit of Quebec forest-products maker Chantiers Chibougamau, plans to begin making kraft pulp in the town of Lebel-sur-Quevillon. The reopening will create 300 new jobs paying an average annual wage of CAD $90,000.
The Lebel-sur-Quevillon plant is expected to produce 300,000 tonnes of kraft pulp per year (about 1% of the global market), while production should begin in 2020. Kraft pulp is used in particular to manufacture hygienic paper and tissue, cardboard packaging and plastic-based substitute products.
Chantiers Chibougamau bought the idled mill from Nexolia Bioenergy in 2018. Quebec Government is awarding an incentive package worth CAD $138 million. The amount includes a 10-year loan for CAD $120 million, as well as the purchase of minority stake in the mill.
"There is so far a strong demand from buyers. We are hopeful that we will be able to begin our first deliveries in the summer of 2020, "said Frederic Verreault, General Manager for Corporate Development.
Chantiers Chibougamau manufactures and supplies wood or wood and metal combination pallets and skids. With more than 600 employees in the northern Quebec region, the company values the resources of the boreal forest and offers its customers superior products accredited by leading certification agencies. The company was founded in 1961 and is headquartered in Chibougamau, Quebec.
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