Montreal, Quebec, Canada 05 July 2013 -- The Quebec government is contributing a further $17.8 million dollars to the specialty cellulose expansion at Tembec’s Temiscaming mill, in the form of a long-term loan. The provincial government had already promised $75 million in financial aid to the $355-million project.

Tembec first announced plans for the expansion in March 2012. Phase I, originally expected to cost $190 million, involves an upgrade to the mill’s recovery boilers and the installation of a turbine to produce green electricity. The new boilers will also allow an increase in specialty pulp output.

Phase II is a further investment of $120 million to replace the mill’s batch digesters and increase capacity by 30,000 t/y.

The expansion projects were postponed for several months in late 2012, due to construction cost increases.

A story in The Gazette on June 28 says the costs of construction and equipment have risen since the project was first announced, and this is the reason for the additional loan.

The Quebec government news release states that the project fits the government’s strategy of encouraging green chemistry and biorefining.