Quebec is providing about 40 per cent of the $342 million investment required to restart a pulp mill and cogeneration facility in northern Quebec that’s been idle for more than a decade.
Nordic Kraft, a new unit of Quebec forest-products maker Chantiers Chibougamau, plans to begin making kraft pulp in the town of Lebel-sur-Quévillon by next summer. The reopening will create about 300 jobs that will likely pay an average of $90,000 a year, the government said in a separate statement.
Quebec’s financial contribution amounts to about $138 million. The amount includes a 10-year loan for about $120 million, as well as the purchase of minority stake in the mill, Frédéric Verreault, a Chantiers Chibougamau executive. Quebec Premier Francois Legault traveled to Lebel-sur-Quévillon Friday to announce the investment.
A banking consortium led by Quebec financial cooperative Mouvement Desjardins also provided financing, while Fonds de solidarité FTQ loaned the company $25 million.