Groupe Savoie, a leader in hardwood processing, is diversifying its operations and markets with a $7 million investment from the Government of Canada and the Province of New Brunswick to establish a wood pellet and briquette manufacturing plant in Saint-Quentin.
The Honourable Percy Mockler, Senator for Saint Leonard, and Premier Shawn Graham today announced $7 million for Groupe Savoie to integrate the new manufacturing plant into their existing operations.
“The Government of Canada, through the Economic Action Plan, is taking steps to stimulate the economy, create jobs and support communities hardest hit by the global economic downturn,” said Senator Mockler on behalf of the Honourable Keith Ashfield, Minister of State for the Atlantic Canada Opportunities Agency (ACOA). “Our investment of $2-million through the Community Adjustment Fund will allow Groupe Savoie to provide important construction employment opportunities and to help maintain over 500 jobs in the forestry sector while creating an additional 17 full-time jobs and acquiring new technology for the company.”
The Province of New Brunswick is providing a total of $5 million towards the $11 million project through a non repayable contribution and a loan.
Our government will seize every opportunity to create and maintain jobs for New Brunswickers,” said Premier Graham. “Strategic investments like these, coupled with our plan for lower taxes and the lower rates that would flow under our new proposed energy agreement with Hydro- Quebec will make us more competitive and ensure more New Brunswickers are employed.”
The funding will allow Groupe Savoie to purchase and install equipment, and provide training for a wood pellet and briquette manufacturing plant it will build next to its existing hardwood operations in Saint-Quentin. Groupe Savoie’s existing operations will supply the sawdust, shavings, bark and chips needed to manufacture the wood pellets and briquettes and allow them to produce an estimated 50,000 tons of pellets and 8,000 tons of briquettes. Export sales are expected to reach over $9 million.
"We are very pleased that the two levels of government have confidence in us and are willing to put in the hard yards to enable us to ensure business continuity at Groupe Savoie Inc.," said Jean-Claude Savoie, President of Groupe Savoie. "Investing in this green energy project, the products of which will initially be mostly exported to Europe, will help make our beautiful province greener. One day, in what I hope is the not too distant future, these granules will be used as a source of energy and will replace heating oil on this side of the Atlantic. We have shifted toward value added products for years now and this is yet another good example."
The Government of Canada, through ACOA, is contributing $2- million toward the project under the Community Adjustment Fund (CAF). Canada’s Economic Action Plan provided a total of $1 billion over two years for CAF to support initiatives which help create and maintain jobs in communities impacted by the economic downturn. Atlantic Canada’s allocation of $100 million under CAF is administered by the Atlantic Canada Opportunities Agency.
For more information regarding the CAF application process, please consult ACOA’s website at www.acoa-apeca.gc.ca.
For information on Canada's Economic Action Plan, please visit www.actionplan.gc.ca.
FOR BROADCAST USE:
The Honourable Percy Mockler, Senator for Saint Leonard, and Premier Shawn Graham today announced $7 million for Groupe Savoie to establish a wood pellet and briquette manufacturing plant. These investments will allow Groupe Savoie to provide important construction employment opportunities and maintain over 500 jobs in the forestry sector while creating an additional 17 full-time jobs and acquiring new technology for the company.
The Government of Canada, through ACOA, is contributing $2- million toward the project under the Community Adjustment Fund. The $1 billion fund, part of Canada’s Economic Action Plan, support initiatives which help create and maintain jobs in communities impacted by the economic downturn. The Province of New Brunswick is providing a total of $ 5 million through a non repayable contribution and loan.
-30-
INFORMATION:
Erin Filliter
Director of communications
Office of the Minister of State (ACOA)
613-941-7241
Ted Parisé
Senior Communications Officer
ACOA New Brunswick
506-452-3917
Marie-Andree Bolduc
Press Secretary
Office of the Premier
506-453-2144
Bruce Macfarlane
Corporate Secretary
Regional Development Corporation
506-444-4606
