Northern paper mills benefit from energy rebates

NEWS RELEASE

MINISTRY OF NATURAL RESOURCES

************************* Electricity rebates strengthen forest industry

McGuinty government strengthens Northern pulp and paper mills

(June 20) - The Domtar pulp and paper mills in Espanola and Dryden are benefiting from $4.3 million in electricity rebates to help lower their energy costs.

The program provides quarterly rebates to pulp and paper mills in the north that purchase a minimum of 50,000 megawatt hours annually and commit to increased energy efficiency.

Companies participating in the $140-million, three-year Northern pulp and paper electricity transition program, including Domtar, have already received over $51 million in total.

Nine mills are currently participating.

The rebates are designed to help lower the company’s energy costs by 15 percent.

Quotes

“Our government has the right plan to strengthen Ontario's forest industry,” said Natural Resources Minister Donna Cansfield. “These rebates are helping pulp and paper mills be more energy efficient and supporting a sector that directly benefits Northern and rural communities which depend on forestry as a way of life.”

“The Ontario government’s help in our efforts to reduce our electricity consumption and costs supports our drive to restore competitiveness to our Ontario pulp and paper operations,” said Tim Houle, general manager of the Domtar Inc. mill in Espanola.

“This program is helping us move in the right direction," Houle said. "At the same time, we recognize that we all have more work to do to become competitive on a North American basis.”

Quick facts

- The McGuinty government has committed over $1 billion in various programs over five years to increase the competitiveness of Ontario’s forest industry.

- More than $376 million in new forest sector investment is already underway, and 4,770 jobs have been created or saved.

- Three pulp and paper mills which announced shutdowns and that have re-started operations are St. Marys Paper, Terrace Bay Pulp and Thunder Bay Fine Papers.

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