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SFK Pulp Making Short-term Fiber Supply Deals

June 17, 2009 - SFK Pulp today announced that it has entered into agreements with AbitibiBowater and other suppliers to secure a short-term supply of wood fiber for its Saint-Felicien pulp mill in Quebec, Canada.

"Negotiations are continuing to establish long-term agreements with our suppliers," said Pierre Gabriel Cote, SFK Pulp's president and CEO.

Quebec Government No Help
SFK had been working closely with the Quebec government to identify appropriate financial assistance. However, SFK said that the Quebec government has turned down its request for assistance.

"We are disappointed with the Quebec government's response to which we had filed an application for assistance backed by a solid business plan," Cote said.

"The situation remains difficult, given the market price for wood fiber in Quebec, the market price for NBSK pulp, the strength of the Canadian dollar and the decline in global demand for pulp," Cote said.

"We continue to take every necessary steps to handle these challenges," he added.

SFK pointed out that its pulp mill in Saint-Felicien consumes over 740,000 metric tonnes of wood chips per year and plays a key role as a wood fiber integrator in Saguenay-Lac-Saint-Jean.

The mill is a major economic pillar in this region, generating over 300 direct jobs and, with its economic activities, supporting 1,850 indirect jobs in sawmills, logging and other operations, SFK said.

SOURCE: SFK Pulp




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