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CP Forest Products celebrates completion of major expansion.

Canadian Pacific Forest Products Ltd. completed a $500-million expansion and modernization of its Thunder Bay newsprint mill on Oct. 18.

The modernization program included such new facilities as a thermomechanical pulp mill, a newsprint machine, a newsprint recycling plant and a secondary effluent treatment system. It represented the single largest investment made to date by Canadian Pacific Forest Products.

"The Thunder Bay modernization program was undertaken to increase productivity, improve product quality and enhance our environmental performance," commented Paul E. Gagne, the company's president and chief executive officer.

The four main elements of the program are:

a $105-million, 245,000-metric-ton thermomechanical pulp mill which started operating in February, replacing a groundwood mill and a sulphite pulp mill

a $245-million, 240,000-metric-ton, twin-wire Valmet newsprint machine which started operating in April, replacing two 60-year-old machines at the mill

a $36-million secondary effluent treatment system which treats effluents from the kraft and thermomechanical pulp pump mills, reducing biological oxygen demand, chlorinated organics and toxicity in the Kaministiquia River

a $75-million newsprint recycling plant which consumes up to 350 tons per day of old newspapers and magazines

The newsprint recycling facility started operating last month and makes CP Forest the first large, integrated Canadian pulp and paper manufacturer able to make newsprint using waste newspapers. The recycled material will account for 40 per cent of the content of the company's final product.

The recycling facility at the CP Forest mill will consume about 115,000 tons of old newspapers and magazines annually. It has the capacity to produce 95,000 tons of de-inked pulp.

Waste paper is being obtained from several communities in Ontario and 11 American States by the company's exclusive supplier, Laidlaw Waste Systems Limited of Burlington, Ont. Because most of the paper will be collected in the U.S. Midwest, where CP Forest ships 95 per cent of its newsprint, the company will be able to use back-hauling to save money on the supply of recyclable material.

"Newsprint recycling represents an important business opportunity for our company," said Gagne. "We consider our move into newsprint recycling as a good investment in our future as well as in the future of our customers, the publishers and their readers."
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Focus on Thunder Bay; Canadian Pacific Forest Products Ltd.'s modernization of its newsprint mill
Publication:Northern Ontario Business
Article Type:Company Profile
Date:Nov 1, 1991
Previous Article:Bearskin accepts a new challenge with acquisition of tour company.
Next Article:Kept afloat.

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