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Capital invested to meet environmental regulations.

Capital invested to meet environmental regulations

"Survival mode" is a common term used by several industry officials to describe the current business climate in the pulp and paper sector.

The recession has forced several companies to scale back spending plans to essential items and projects made necessary by environmental regulations.

The following is a list of capital projects being undertaken by the industry. The list also includes one notable project cancellation.


Boise Cascade Canada Ltd. is planning a $15-million upgrading of the primary and secondary effluent treatment facilities at its Fort Frances mill.

The project, which still requires final approval, includes the construction of a new treatment facility north of the company's current treatment lagoon.

The recent announcement of the proposed project comes on the heels of the completion of several environment-related projects at the company's mills.

The completed projects include a new $5-million electrostatic precipitator at the Kenora newsprint mill to reduce ash emissions and a $7.2-million precipitator reconstruction and scrubber installation at the Fort Frances mill to reduce air-borne pollutants.

An additional $20-million project completed at Fort Frances will allow the mill to increase the substitution of chlorine dioxide for chlorine in the bleaching process.

The project included the installation of a 23-ton-per-day chlorine dioxide generator and a modification of the mill's bleaching plant. The project was necessary in order to meet federal environmental regulations.

A plan to construct a thermomechanical mill at the company's Kenora site remains on the shelf until the industry's fortunes improve, according to Wendy Shchepanik, Boise-Cascade's regional manager of communications.


A pair of large-scale capital projects are nearing completion at Canadian Pacific Forest Products Ltd.'s Thunder Bay mill.

Emilio Rigato, the company's corporate manager of capital projects, said construction of the company's 345-ton-per-day recycling facility is on schedule for completion this fall. The $75-million facility will draw a majority of its supply from the American Midwest.

Also on schedule for completion later this year is the company's new $36-million secondary effluent treatment facility. The plant will reduce the mill's discharges of chlorinated organic matter and will reduce the mill's discharges of on the Kaministiquia River. The treatment plant will allow the company to meet provincial environmental standards.

Rigato added that company officials are also hoping to have a new $9-million chip dumping facility in operation at the newsprint mill early next year.

While activity at Canadian Pacific's Lakehead facility remains high, there are no capital projects scheduled for the company's Dryden mill.


Reconstruction of the Number Three paper machine at E.B. Eddy Forest Products Ltd.'s Espanola mill was completed earlier this year. The project had a price tag of approximately $36.4 million, with about $620,000 being spent this year.

The company is currently undertaking two projects related to the environment and energy-conservation.

E.B. Eddy entered into an agreement with Kamyr Inc. of Glen Falls, N.Y. to jointly evaluate an ozone bleaching process at the company's Espanola mill. Ozone bleaching, which has the potential to replace chlorine bleaching, does not generate any chlorinated organics.

E.B. Eddy and the provincial Energy Ministry are conducting a joint project at the company's Nairn Centre sawmill. The energy savings test involves the sorting of green lumber according to moisture content prior to making up loads for kiln drying.

The company is also upgrading its mill and woodlands operations at a projected cost of approximately $16.1 million.


As one capital project nears completion at the James River-Marathon's mill in Marathon, the groundwork is being laid for an even larger venture.

Bob Gregor, president and resident manager of the mill, said that an $8-million upgrading project is expected to be on-line by the end of the month. The project involves replacing the mill's original power boilers with packet boilers.

According to Gregor, the company is now seeking government approval and acquiring land for the construction of a new $40-million secondary treatment plant.

The plant will reduce the chlo effluent and reduce its oxygen demand on water.

James River-Marathon recently completed a $22-million rebuilding of the mill's bleach plant, part of a series of initiatives designed to reduce the amount of chlorinated organic matter produced by the mill.

Gregor added that there are additional projects on the horizon. For example, the company has earmarked $150 million for a five-year capital investment program scheduled to begin sometime next year.


A spokesman for Kimberly-Clark of Canada Ltd. said the firm plans to spend approximately $30 million on capital projects over the next three years at its bleached kraft pulp mill in Terrace Bay.

Approximately 20 per cent of the total will be spent on environmental projects and the balance will be used for upgrading and expanding existing operations.


The sole capital project for the Timmins-based company is a $150-million expansion of the Malette Kraft Pulp and Paper mill in Smooth Rock Falls. The project, expected to be completed next summer, will boost the mill's production capacity from the current level of 300 tons per day of bleached kraft pulp.


Jim Withers, the vice-president of operations for St. Mary's Paper Inc., said the company has no plans to spend money on capital projects other than routine upgrading of equipment.

Withers pointed out that the Sault Ste. Marie mill recently competed a $4-million installation of scrubbers at its generating plant.

He anticipates that the company will announce capital projects aimed at satisfying federal environmental regulations in the near future.


Abitibi-Price Inc. recently announced that the planned addition of a $50-million 140,000-ton-per-day de-inking line at the Fort William mill has been cancelled.

Abitibi officials stated that the recycling line cannot be operated profitably at the Lakehead site because the Canadian Paperworkers' Union refuses to agree to a seven-day work week.

Bob Tait, the company's manager of investor services, noted that many forestry companies have "pared back their capital spending plans quite a bit."

Tait added that Abitibi-Price is currently allocating all funds for capital improvements to projects required to meet environmental regulations which are scheduled to come into effect next year.

Work on the projects is expected to begin early next year and will cost the company a total of about $350 million.

PHOTO : The new $75-million recycling facility at Canadian Pacific Forest Products Ltd.'s Thunder Bay millis scheduled for completion this fall.

PHOTO : At its mill in Fort Frances Boise Cascade Canada has completed a $7.2-million precipitator reconstruction and scrubber installation as well as a $20-million project which will allow the mill to increase the substitution of chlorine dioxide for chlorine in the bleaching process.
COPYRIGHT 1991 Laurentian Business Publishing, Inc.
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Report on Forestry
Author:Krejlgaard, Chris
Publication:Northern Ontario Business
Date:Sep 1, 1991
Previous Article:Pulp, paper industry faces tough decisions.
Next Article:Company's fortunes reversed by its new, 'hands-on' managers.

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