Maryland company to bring 100 new jobs to Bow, N.H.

BOW, N.H.--(BUSINESS WIRE)--Public Service of New Hampshire announced today that PENCOR Inc., a Maryland environmental project development firm, has reached an agreement in principle with PSNH to build a paper recycling facility in Bow, adjacent to Merrimack Station, bringing 100 new manufacturing jobs to the community.

"We have worked hard to create a `business friendly' atmosphere in New Hampshire that is conducive to business growth and expansion," said Governor Steve Merrill. "We have made the Granite State a preferred location for economic development by cutting taxes and regulations, while reforming workers' compensation. The development of this recycling facility will be good for the economy of New Hampshire, good for the community and good for the environment."

The announcement comes after several months of discussions between PSNH and PENCOR. "PSNH has been working aggressively to develop this prime industrial property," said William T. Frain, Jr., PSNH president and chief operating officer. "We are very pleased to be able to help bring a new employer to New Hampshire and a large manufacturer to our system, which is beneficial to all PSNH customers."

The agreement that has been reached in principle between PSNH and PENCOR includes provisions for PSNH to provide electricity, steam, water and 75 acres of land to PENCOR, so that they can develop a $240 million facility that recycles 100 percent post-consumer mixed office waste paper into deinked pulp used to manufacture high grade writing and printing paper.

According to Andrew H. Kaufman, president of PENCOR, "the raw, used office paper that will be treated and turned into pulp will come from New Hampshire and other New England states, thereby eliminating the need for it to be landfilled or incinerated."

PENCOR recently began construction on a similar facility in Hagertown, Md., which is scheduled to begin operating in mid-1996.

"We are pleased about the prospect of locating this facility in New Hampshire," said Kaufman. "While there are several steps still to take relative to permitting and the financing of the project, we are optimistic that we can begin construction of the facility by early 1996."

PENCOR intends to immediately ask the Business Finance Authority to consider their application for $55 million of 1994 tax-exempt financing. At the news conference, Frain indicated that PSNH will support PENCOR's application.

"Although 100 percent of the savings that we achieve as a result of BFA tax-exempt bonds are invested in economic development and conservation and load management initiatives, we believe that it is more beneficial to the state and to our customers to ask the BFA to consider giving the $55 million of tax-exempt financing to PENCOR to support this project," said Frain.

FACT SHEET

For more information about PENCOR, contact Tom Murray [phone]

Environmental Benefits of Paper Recycling Facility

o The entire waste paper-to-pulp process uses conventional deinking methods which are evironmentally clean. There are no odors, noises or harmful air emissions.

o According to the EPA, every ton of recycled paper produced requires 2,000 fewer gallons of water and 4,000 KWH less energy to manufacture than virgin paper.

o Making one ton of paper from recycled materials saves 17 pulp trees.

o The chemicals used for pulp processing are all non-toxic and well below any EPA or OSHA minimum content standards.

o The waste office paper to be processed consists of all clean, white, bright-colored and coated papers including envelopes, mail, folders, correspondence, data processing paper, etc.

Technical Features of Proposed Facility

o Using the latest in deinking and pulping technology, the plant will process daily about 635 tons of post-consumer office waste paper into 440 tons of high grade market pulp.

o The waste paper tonnage to be recycled is the equivalent of 10 rail cars or 30 tractor trailer loads. The paper will arrive in 2,000 pound bales.

o There will be approximately 40 pulping batches daily, each consisting of 16 tons of waste paper. Each batch begins with the addition of approximately 25,000 gallons of water.

FACT SHEET ON PENCOR/PSNH ANNOUNCEMENT

PENCOR

o PENCOR is an environmental project development firm, specializing in industrial and municipal solid waste disposal and recycling facilities that feature on-site manufacturing capabilities for the conversion of recyclable materials into commercially viable products.

o PENCOR, based in Baltimore, Md., was founded in 1991.

o PENCOR recently broke ground on a $220 million deinking facility in Hagerstown, Md. that will produce 100 percent post-consumer recycled pulp.

BOW PROJECT

o $240 million facility to produce deinked pulp derived from office paper (not newsprint). This facility is similar in scope and design to the Maryland facility.

o 100 new jobs created

o 75 acre PSNH site adjacent to Merrimack Station

o Ground breaking (est) January 1996, preceded by permitting and financing during 1995

o 136,000-172,000 tons of deinked pulp proposed each year

o Sources of paper from surrounding region, shipped to facility by rail and truck

PSNH

o PSNH worked with PENCOR to bring facility to New Hampshire

o PENCOR will be one of PSNH's largest customers

o PSNH will provide electricity, steam, water and land, with final details being developed

STATE OF NEW HAMPSHIRE

o The Department of Resources and Economic Development, the Department of Environmental Services, and other appropriate state agencies will continue to be involved as this project moves forward.

CONTACT: Public Service of New Hampshire

Mary-Jo Boisvert, 603/634-3297