Harper Govt. Invests in a Demonstration Plant to Produce Cellulosic Filaments for Adhesives and more

TROIS-RIVIERES, QUEBEC -- The Honorable Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec, on behalf of the Honourable Joe Oliver, Canadas Minister of Natural Resources, announced an investment of $15 million for a demonstration project at the Kruger Mill in Trois-Rivieres. The total value of the project is $43 million.

Minister Lebel made the announcement alongside representatives from the Quebec Government, FP Innovations and Kruger Biomaterials Inc.

"The investment we are announcing seeks to ensure a more sustainable future for forestry companies in Quebec," said Minister Lebel. "We are committed to helping the sector transition to higher-value activities and develop new markets."

"Our government recognizes that our forest sector is an important job-creating economic driver," said Minister Oliver. "We will continue to support this sectors transformation so that it retains its leading position in the communities it supports."

The demonstration plant will produce cellulose filaments (CF) a revolutionary, chemical-free, renewable and recyclable material that can dramatically improve the quality of pulp, paper, bioplastics, adhesives, paints and coatings. A Canadian innovation, the commercialization of CF gives Canada an international competitive advantage. It is estimated that the use of CF represents a potential market of approximately $500 million in revenue per year for the forest industry.

 On November 22, Minister Denis Lebel had announced an investment of over $61 million in Quebecs forestry industry, including $35 million to fund three new projects as part of the Investments in Forest Industry Transformation Program. Todays announcement marks the first of these projects.

The Government of Canada has invested $1.8 billion in Canadas forest sector, $693.7 million of which was earmarked for Quebec. The Government will continue to support the transformation of Canadas forestry industry, to facilitate the creation of opportunities abroad and to encourage innovation.