January 11, 2000
(Forest Resources and Agrifoods)

Capital investment by pulp and paper industry reaches $52 million in 1999

Forest Resources and Agrifoods Minister Kevin Aylward announced today that capital expenditures by both Corner Brook Pulp and Paper and Abitibi Consolidated into their mill operations exceeded $52 million in 1999. Mr. Aylward said: "The level of economic investment made by each company into their mill and woodlands operations is quite significant. Through expanding and improving upon their existing infrastructure both companies are demonstrating their commitment toward the continued growth of the pulp and paper industry in Newfoundland and Labrador."

In 1999, Corner Brook Pulp and Paper had capital expenditures totalling $28 million. This included major expenditures on # 2 paper machine where rebuilding and recycle upgrading totalled $13.8 million. New controls and quality improvements cost $2.5 million, rebuilding of the Deer Lake generating unit cost $1 million, $3 million was invested into the woods road program while upgrades of various other mill operations totalled $7.7 million.

Capital investments made by Abitibi Consolidated pulp and paper operations based in Stephenville and Grand Falls-Windsor in 1999, were also very significant. Capital expenditures from both mills totalled $24.5 million. This expenditure included upgrading of the TMP pulp line, installation of a steam plant package boiler and a new stack for the # 7 paper machine for the Grand Falls-Windsor mill and refurbishment of the Millertown Dam.

Media contact: Cynthia Layden-Barron, Communications, (709) 729-6183

2000 01 11                                     3:10 p.m.