SGF Invests Near $20 M in the Gaspé Peninsula

MONTREAL, Sept. 3, 2010 /CNW Telbec/ - Société générale de financement du Québec (SGF) announces an approximate $20 million investment for the consolidation and modernization of Produits forestiers Temrex (Temrex). This project will not only ensure the company's viability over the next 20 years but also enable it to regain its competitive position across its markets, while maintaining permanent and stable jobs within this region of the Gaspé Peninsula.

"It became clear that the company's viability had to include consolidating activities within a single plant and investing the necessary capital to upgrade its equipment and technologies, in order to successfully compete and maximize regional economic benefits," explains Pierre Shedleur, President and General Manager of SGF.

As such, to maximize the company's performance, Temrex produced an official request to the Ministère des Ressources naturelles et de la Faune to transfer its wood fiber supplies (TSFMA) from the St-Alphonse plant to the Nouvelle plant, which was subsequently granted. "We are extremely grateful toward Minister Nathalie Normandeau for her invaluable collaboration, added Pierre Shedleur. By increasing fiber supplies, we will be able to launch the Nouvelle plant upgraded project, and ensure its optimal operation."

"Our government is proud to count on SGF's support, which is focused in a home-grown company, said Ms. Nathalie Normandeau, Minister of Natural Resources and Wildlife. SGF has confirmed its belief in the Gaspé Peninsula through its additional $20 million investment to consolidate Temrex's operations, thereby ensuring the maintenance and creation of quality jobs."

Temrex will merge all of its operations in a single plant and will assist with employee transfer plant to Nouvelle's. "This investment will lead to the potential creation of over 80 jobs within the region throughout the modernization project," concluded Mr. Shedleur.

Upon achieving its planned production level, the plant's expected economic benefits would be as follows:

    
    - Approximately 160 year-round jobs within the plant and a total payroll
      of $10 million;
    - Nearly 85 jobs among local suppliers, with a total payroll of
      $7.5 million;
    - Annual tax revenues of over $8 million for both levels of government;
      and
    - The extension of the forest industry period of activity, as well as the
      maintenance of 750 related jobs (harvesting, transportation,
      landscaping, etc.).
    

Furthermore, this investment should be a prelude to the development of secondary processing, which would lead to the creation of well-paying jobs.

Note: Estimates made using the Institut de la statistique du Québec's trans-sectoral model.

About SGF

Société générale de financement du Québec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary solutions tailored-made to meet corporate needs.

-%SU: LBR,RNT

-%RE: 63

For further information: Sophie Alarie, Director, Marketing and Public Relations, 514 876-9368, [email protected]