Chantiers Chibougamau announces an agreement to acquire the Béarn and La Sarre sawmills from GreenFirst Forest Products

CHIBOUGAMAU, QC, Dec. 21, 2022 /CNW Telbec/ - Chantiers Chibougamau, a family-owned company that has been manufacturing and marketing forest products since 1961, has entered into an agreement with GreenFirst Forest Products to acquire all of the company's Quebec operations, namely the La Sarre and Béarn sawmills and related forestry operations.

Formerly owned by Tembec and then by RYAM-Rayonier as of 2017, these two mills, which are part of Quebec's rich forestry heritage, have been owned by GreenFirst Forest Products since August 2021. The 320 men and women who work for GreenFirst Forest Products in Quebec today would become part of the Chantiers Chibougamau family after the transaction closes.

The acquisition of GreenFirst's operations is in line with Chantiers Chibougamau's desire to consolidate its existing operations and to continue to increase the group's autonomy and resilience to better deal with fluctuations in the wood industry. The core of the organization, based in Chibougamau, will be able to count on more high-performance lumber for engineered wood, kraft pulp production at the Nordic Kraft plant in Lebel-sur-Quévillon will benefit from greater stability of its long-term chip supplies, while the team at Scierie Landrienne and those at the two Abitibi-Témiscamingue plants will benefit from the addition of everyone's talents and skills.

Furthermore, operations related to the Béarn and La Sarre sawmills are based on a long-term commitment to Forest Stewardship Council certification, as it's the case for Chantiers Chibougamau.

Quote:

"This transaction is consistent with our nearly 60 years of existence, guided by increasing our autonomy in all our activities. We are not looking to expand for the sake of growth, but to make each of the links in the chain that we make up stronger. We are also proceeding with this transaction because we firmly believe in the relevance and future of cutting and processing trees in Quebec in the long term, to meet the needs of the fight against climate change through our products.

Of course, we buy mills and equipment, but we first choose the talent and work ethic of the men and women who give life to these mills in Béarn and La Sarre. We look forward to getting to know them and welcoming them to our team defined by proximity, common sense, sobriety and efficiency."

              - Frédéric Verreault, Executive Director, Corporate Development

The transaction is subject to the approval of the Canadian Competition Bureau and is expected to close in the first quarter of 2023.

Chantiers Chibougamau commends the cooperation of GreenFirst Forest Products, its management and its partners in the implementation of this transaction.

Post-Closing Higlights:

• 1500 jobs;
• Processing of approximately 2.7 million cubic metres of wood for the annual production of 600 million board feet of lumber, wood that could be used to build 40,000 single-family homes per year;
• North American presence in engineered wood with I-joists, glulam and cross-laminated wood in North America through the Nordic Structures business unit;
• 300,000 tons of Northern Bleached Softwood Kraft (NBSK) pulp;
• Nearly 40 MW of renewable energy.

About Chantiers Chibougamau

Chantiers Chibougamau, a family business, has been manufacturing and marketing highly competitive forestry products since 1961. More than 1150 people work at Chantiers Chibougamau, making it the largest employer in the municipalities of Chibougamau and Lebel-sur-Quévillon (Nordic Kraft), and consequently in the entire Northern Quebec region. The company also plays a similar role in Landrienne, near Amos, with Scierie Landrienne, and has a design and project management office, Nordic Structures, in Montreal. In addition to kraft pulp, lumber and renewable energy, Nordic Structures' engineered wood products have an important place in the North American market.

SOURCE Chantiers Chibougamau Ltée

Jeremy Ghio, [email protected], Cell. : [phone]