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Damabois Opens New Wood Processing Plant in Quebec

CAP-CHAT, Quebec, Canada (February 2, 2006) — Province supports project with a line of credit.

  [ 2/2/2006 ]  By: NEWS BRIEFS   Related Link...  Print This Article  Reprint/License This Article  

Damabois Inc. has opened a new aspen sawmill here. The plant, which combines primary and secondary wood processing, specializes chiefly in manufacturing components that meet the requirements of palette makers. It will also produce superior grade components for the furniture, kitchen cabinet, molding and other sectors. Thirty new jobs have resulted from the project.

“The Damabois plant, which will be very advanced technologically, is a concrete example of economic diversification,” said Pierre Corbeil, minister of natural resources and wildlife for Quebec. We are talking about many value-added products and I am proud that with the volume of wood the plant will have access to, we are moving from words to deeds.”

The Cap-Chat plant will be supplied with 39,000 cubic yards of aspen from public forests for which Corbeil granted a timber supply and forest management agreement (TSFMA) in August. In addition, the plant will also receive supplies of 15,600 cubic yards from private forests.

Moreover, under an agreement reached by Damabois with Spruce Falls of Matane, a portion of the latter’s supply will transit through the Cap-Chat plant so that timber that is appropriate for the new sawmill can be selected.

In return, Damabois will provide an equivalent volume of woodchips for the commercial pulp mill.

“This new plant will add value to volumes of hardwood that until now were not used in Gaspesie,” Corbeil said. “In the current context, this strategy makes maximum use of the forest resource. This is how to manage the forest now, and I compliment the two companies for their initiative.

Investissement Quebec has guaranteed a $4 million loan from financial institutions and a line of credit of $500,000 for the project. In addition, the ministere du Developpement economique, de l’Innovation et de l’Exportation (MDEIE), as part of its economic project support program, has provided $250,000 of financial assistance.

“Our government supports the development of value-added projects,” Corbeil said. “Under the $450 million government action plan announced last October, $18 million will be injected to diversify the forest products industry by developing new products and technology transfers in the region.”

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