Released December 17, 2009 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Pulp and paper mills across Canada will be bustling with construction during the next two years as companies invest in energy and environmental compliance projects ahead of a March 2012 deadline. Access to Canada's $1 billion Green Transformation Program has opened the door for mill owners to develop and implement capital projects that would otherwise not exist. Decreasing demand, a strong Canadian dollar, and weak margins previously made it extremely difficult for pulp and paper companies to justify capital expenditures. For mill owners, the list of potential projects is long, as many of the qualifying mills have gone for years without any major investments. Early indications point to projects that involve boiler and turbine rebuilds and new installations. With equipment delivery periods taking 12 to 18 months depending on the scale of the projects, the schedule to design, engineer, construct and complete projects will become aggressive in the coming months in order to meet the program's deadline.
Of the 24 companies participating in the program, Domtar Corporation (NYSE:UFS) (Montreal, Quebec) qualifies for the largest portion of the funding, with $143.8 million. Canfor Corporation (TSX:CFP) (Vancouver, British Columbia) ($122.2 million) and West Fraser Timber Company Limited (TSX:WFT) ($88.4 million) round out the top three. Canfor's early plans include a low-odor recovery boiler and several small energy-improvement projects. Domtar has engaged consulting firm KSH (Montreal, Quebec) to study power generation projects at several sites. Plans for West Fraser's Eurocan mill in Kitimat were canceled when the company announced in November that it plans to cease production at the site. However, the company's operations in Quesnel, British Columbia, and Hinton, Alberta, are gearing up for electrical generation projects. For additional information, see November 9, 2009, article - Canadian Pulp and Paper Mills Investing in Power Plant Projects.
Industrial Info has identified more than $700 million in project activity related to the program and expects that in the next couple of months, some will be canceled, and others will move forward.
According to Randy Godet, VP Pulp & Paper at Industrial Info, "Though limited in funds and the number of mills that will participate, the Green Transformation Program is a great opportunity for mills, suppliers and vendors, because it is unlikely that any of the proposed projects would have moved forward if not for the program".
Join Mr. Godet as we discuss Canada's Green Transformation Program and what it means for the North American Pulp, Paper & Wood Industry on this edition of "Navigating the Currents of Change" on Industrialinfo.com.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.
Industrial Info has identified more than $700 million in project activity related to the program and expects that in the next couple of months, some will be canceled, and others will move forward.
According to Randy Godet, VP Pulp & Paper at Industrial Info, "Though limited in funds and the number of mills that will participate, the Green Transformation Program is a great opportunity for mills, suppliers and vendors, because it is unlikely that any of the proposed projects would have moved forward if not for the program".
Join Mr. Godet as we discuss Canada's Green Transformation Program and what it means for the North American Pulp, Paper & Wood Industry on this edition of "Navigating the Currents of Change" on Industrialinfo.com.
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.
