Solifor invests $36M to secure quality fibre supply for Québec sawmills
By Fonds de solidarité FTQ
Oct. 13, 2017 - To further secure the supply of quality fibre for Québec sawmills and processors, Solifor continues its expansion outside Québec with the acquisition of Ste-Aurelie Timberlands, a 24,910-hectare forest property in Maine.
The $36 million deal is Solifor's second outside Québec, bringing its out-of-province investments to $65 million.
Located at the border of Maine and Québec, this property, subject to forest management, is characterized by a mixed forest cover (coniferous and hardwood) and is in full development. The territory's main customers and users are Québec companies, including Maibec and Groupe Lebel. Transportation being an important cost for Québec sawmills, this transaction will contribute to a better bottom line.
"By prioritizing forestry as a sector of excellence, the Fonds de solidarité FTQ is showing its clear support for this vital industry and its 160,000 workers," said Janie Béïque, senior vice-president of Natural Resources, Industries, Entertainment and Consumer Goods at Fonds de solidarité FTQ. "This second investment in Maine offers an innovative solution for our forest industry and will drive job creation and preservation here at home."
An initiative of the Fonds de solidarité FTQ, Solifor has invested $200 million to date to acquire 153,000 hectares of forest land in Québec, more specifically, in the Bas-Saint-Laurent, Lotbinière, Charlevoix, Saguenay, Portneuf, Mauricie and Abitibi regions, as well as 46,000 hectares in Maine, near the Québec border.
"Solifor is planning other acquisitions to further secure the fibre supply for Québec companies, making it a partner of choice for the Québec forestry industry," said Solifor president Raynald Arial.
It will be recalled that Québec's forest industry is one of the province's four economic sectors of excellence prioritized by the Fonds in its strategic planning.