Business News

Fraser Papers Completes Modernization Project Announces Restart at Plaster Rock Lumbermill

Monday 09. November 2009 - Fraser Papers Inc. ("Fraser Papers" or the "Company") announced today that its lumbermill in Plaster Rock, New Brunswick is scheduled to restart operations on November 16, 2009. Approximately 175 employees have been recalled to work.

The Plaster Rock lumbermill recently completed a CAD$17.6 million modernization that included the installation of a new biomass fueled boiler, a new lumber drying kiln and upgraded saw line equipment. The project, completed under budget, will eliminate the mill’s dependence on oil and lower its conversion costs by approximately 20%. It was financed through a commercial loan made by the Business and Financial Support Group of Business New Brunswick, which has a mandate to fund initiatives that improve energy efficiency and productivity at existing business operations in New Brunswick.
Fraser Papers has informed its suppliers that it will start receiving saw logs on November 9, 2009 at pre-defined price levels to support the re-start of the mill. While the lumbermill will restart on November 16, the planer mill will restart approximately three weeks later. Lumber shipments to customers are expected to commence in early December.
“A lot of dedicated people, including our employees, our contractors and our suppliers, have been involved with this project and we are grateful for their contributions,” commented Peter Gordon, Chief Executive Officer of Fraser Papers. “We are particularly appreciative of Premier Shawn Graham’s involvement in our project at the very early stages, our shared vision for the mill and community of Plaster Rock, and the commercial financing provided by Business New Brunswick that has made it a reality.”
“In addition, the recent announcement of the government’s proposed partnership with Hydro-Québec to deliver lower electricity rates would reduce our manufacturing costs,” Gordon added. “We support this initiative as lower power rates for businesses would provide critical assistance to New Brunswick’s forestry industry and Fraser in particular. The proposed agreement would increase the competitiveness of New Brunswick companies and assist their efforts in creating and maintaining jobs.”
Fraser Papers estimates that the proposed lower electricity rates would have a direct benefit to its pulp and energy complex in Edmundston, New Brunswick and its Plaster Rock lumbermill in excess of CAD$8 million per year.