The C$32 million investment includes the addition of an energy system and kilns to dry lumber, and a planer and packaging system to allow for the production of finished lumber ready for market. Engineering, design and construction activities will occur over the next two years, with a return to production forecast for 2014. The investment is subject to the company reaching an acceptable labor agreement with the United Steelworkers union and finalizing an agreement on municipal matters with the Township of Ignace.
The Ignace project is consistent with AbitibiBowater’s overall strategy of achieving greater efficiency with existing assets, focused growth and building on proven competencies, according to Richard Garneau, President and Chief Executive Officer of AbitibiBowater. “Assuming satisfactory outcomes in discussions with the United Steelworkers and the Township of Ignace, the project announced today will result in a sawmill of good scale by eastern Canadian standards and will allow the Company to more efficiently use the wood supply presently available to us,” stated Garneau. “Lumber is and will remain a core business for the Company, particularly where it can favorably affect the economics of our pulp and paper facilities. Once the restart and upgrade are completed, Ignace will be well-positioned to supply both the domestic and U.S. markets.”
The information in this article was current at 06 Dec 2011