Major investment by Canada Economic Development and Natural Resources Canada

SAYABEC, QUEBEC--(Marketwired - July 14, 2015) - Government of Canada

The Honourable Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec, and the Honourable Greg Rickford, Minister of Natural Resources Canada and Minister for the Federal Economic Development Initiative for Northern Ontario, announce that Uniboard Canada Inc. has been granted financial assistance to improve the productivity and production capacity of its Sayabec mill in Bas-Saint-Laurent.

This support, which totals $5.3 million, is being awarded in the form of a $3 million repayable contribution through CED's Quebec Economic Development Program and of a $2.3 million non-repayable contribution through Natural Resource Canada's Investments in Forest Industry Transformation program.

Quick facts

• Uniboard Canada Inc. is Quebec's leading manufacturer of thermofused melamine panels, medium-density fiberboard (MDF), high-density fiberboard (HDF), laminate flooring and decorative wood products.
• With its 380 employees, the company's Sayabec mill is the largest industrial employer in the La Matapédia RCM as well as the largest integrated particleboard manufacturing facility in North America. The mill produces value-added particleboard and melamine panels for the manufacture of, among other things, ready-to-assemble furniture, countertops, kitchen cabinets and exterior coverings.
• The two-phased project involves integrating a European technology for the high-temperature steam preheating of raw particleboard and subsequently adding a panel laminating line to better meet the diverse demands of the market.
• The funding from both CED and Natural Resources Canada will go to financing the acquisition and installation costs. This project will generate an overall investment of $29,575,000.

Quotes

"Our government believes that economic prosperity is achieved through investments like the one Uniboard Canada is about to make to raise the production capacity and competitiveness of its Sayabec mill. Today's announcement illustrates our commitment to supporting projects that further the economic growth of the regions of Quebec."

Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec

"Today's announcement will help create jobs and prosperity for Quebecers and all Canadians. This investment will enable the Canadian forest sector to become more innovative, all within a perspective of sustainable development. Our Government is proud to support projects that contribute to the innovation and competitiveness of the forest sector while ensuring its sustainable development."

Greg Rickford, Minister of Natural Resources Canada

"The shareholders of Uniboard Canada inc. are proud that our company is to become the first in North America to make use of this innovative technology for the preheating of the particleboard mats. The project will enable the Sayabec facility to boost its production capacity and improve productivity. With these major investments, the company will ensure the mill's viability and better serve the needs of its clients."

James N. Hogg, President and CEO, Uniboard Canada inc.

Related document
See the accompanying backgrounder for details on the particleboard preheating system.

Related links

To learn more about the QEDP: http://www.dec-ced.gc.ca/eng/programs/qedp/index.html

For further information on Uniboard Canada: http://uniboard.com/

Stay connected

Follow CED on Twitter @CanEconDev

Follow NRCan on Twitter @NRCan

BACKGROUNDER

Wood Fiber Mat Preheating System

Through funding from Natural Resources Canada's Investments in Forest Industry Transformation (IFIT) program, Uniboard Canada Inc. is aiming to install a preheating device for the manufacture of wood panels before they go into a press. A first of its kind in North America, the flash steam process will increase production by preheating the wood particle mat with water vapour.

Through this investment, Uniboard will contribute to changing North American production standards for particle board. In addition, the project will allow for a review of the efficiency of various production recipes which will optimize the consumption of materials, such a glue and resin, which will lower the mill's environmental impact.

The IFIT program was first introduced in Canada's Jobs and Growth Budget 2010 to help secure a more prosperous future for Canada's forest industry and the communities that depend on it.

The Government of Canada's Economic Action Plan 2014 committed $90.4 million over four years to recapitalize the IFIT program in support of the ongoing renewal of Canada's forest sector.

This project aligns with the goals of the Investments in Forest Industry Transformation program through the demonstration of a new innovative technology in Canada's forest sector.

For more information, visit Natural Resources Canada on the Web.

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