Lumber News Archives: Sept 2008

BioFuels, Japanese Earthquake Test, Chinese Wood Framed Home Building, Mackenzie Pulp Mill, Pine Beetle Money, Bio-Energy Money, Investing in Forestry, Global Pulp & Newsprint, Conifex Inc’s. Future Plans, Nanaimo Forest Products Meets Deadline, US Forest Products Sector, Japanese Spruce Imports, Tembec Curtails Pulp Facilities


In just the few short months since Madison’s wrote about the rapidly burgeoning field of biomass energy there has been an explosion of research, development and business in that area. In the spring Madison’s was hard-pressed to find any volume of salient information on the subject, now we barely have time to keep up with it all. America, the United Kingdom, the European Union, and Australia are all blazing ahead at lightening speed. The issue of biofuels is so hot in Europe that there have sprung up not one but two agencies devoted to its promotion.
Green Gasoline
The April 2008 major breakthrough in the direct conversion of plant cellulose to gasoline components by a research team in the US northeast (reported in Madison’s July 17 issue, Volume 58, No. 29) has served to bring previously unprecedented levels of business interest to the field. Interest is now so high that catchy descriptive terms are being invented, like green gasoline, cellulosic ethanol and ecotricity.
While in Portland, OR for the Forestry Investment Conference, Madison’s had a very interesting conversation with a fellow running a medium-sized mill outside Beaverton, OR. His company has spent the last year developing a system to bring slash and other wood “waste” roadside. A partnership was formed with a charcoal manufacturer, who then transported the biomass to their plant. So far everyone has been breaking even, but there were significant benefits to both companies: the mill had work for its employees through the winter, the manufacturer had an inexpensive fuel source and both companies have worked out a system that they know will be profitable in the future. In fact they are already planning to add another truck to their transportation chain for next year.
Obviously the Oregon scenario benefits from somewhat fewer difficulties than Canadian companies experience, most especially in the distance from the bush to roadside, but also road and weather conditions in general. However, on the flip side, the sheer volume of material in Canada means that – once a working business model is in place – the profits will be just that much greater. The Oregon company went through quite a few trials before they got it right; for example the branches were falling through the truck bed and hindering the tires, until very recently they simply loaded a couple of dumpsters on the back of the truck. This latest idea actually helped in more ways than one, because they can unload the dumpsters at the plant, pick up a couple more empty ones and be on their way, saving the down-time of removing the material. This mill is offering tours both to other local mills and potential biomass customers, to help educate their community.
Of course this is one example on a small scale. Big business is getting in on the picture as well, with a major announcement on Wednesday, September 24. French nuclear engineering giant Areva SA will design and build plants that will use wood waste to produce electricity for the joint venture, named Adage, while a US-based Duke Energy Corp. unit will manage operations. The plants, which could burn manufacturing and woodprocessing leftovers, as well as construction and demolition debris, will most likely be located along the Eastern seaboard. Anne Lauvergeon, CEO of Areva, said her company has experience in the biomass sector, having designed and built more than 100 biopower facilities in Europe, Asia and South America with a capacity of more than 2,500 megawatts. Adage plans to have one plant operational by 2010, with as many as 12 by 2014. A sample 50 megawatt plant would provide electricity for 40,000 homes and produce 400,000 tons fewer carbon dioxide emissions per year than a coal plant. Areva and Duke said the new venture will have arrangements with suppliers for the use of wood wastes such as residuals from forestry operations within a 50-mile radius around the biomass power plant.
Another recent announcement, that Georgia’s Oglethorpe Power Corporation will undertake the single largest biomass initiative in that state — and maybe the country — by building as many as three 100-megawatt (MW) biomass electric generating plants by 2015 only proves that this sector has a good future. The Oglethorpe biomass project will provide power to OPC’s 38 member cooperatives that supply electricity to nearly half of Georgia’s population. Fuel for the plants range from process roundwood, primary manufacturing residue and harvest residue.
Developments in biofuels are not only moving forward in America, but in Europe as well. Already a major consumer of wood pellets (a significant importer as well, as Europe can only produce 50 per cent of its annual pellet demand), European countries are initiating biomass energy development programs across the continent. In fact there are too many agencies and organizations to mention here, but a comprehensive list of contacts can be found on the European Biomass Association website (www. The EBA is a non profit Brussels based international organisation whose mission is to represent bioenergy at EU level, and defines biomass as renewable energy coming from biological material such as trees, plants, manure, and sometimes waste.
On September 19, 2008 the European Parliament’s Industry, Research and Energy Committee adopted a Renewables Directive Report. The Report states, in part, that “although the 10 per cent target for renewables in transport by 2020 is maintained in this report, it stipulates that 40 per cent of this overall target must come from non-food or feed fuels (2nd generation), including those from biomass, green electricity and hydrogen produced from renewables.” More information is available on the European Biomass Industry Association website (www.
Not to be outdone, the UK is actively promoting homeowners nationwhide switching to bioenergy, whether it be installing small wood pellet burning stoves, or boilers connected to central heating and hot water systems, through a program by the Energy Saving Trust (http:// In addition the Biomass Energy Centre, which is focussed almost exclusively on wood residue, provides information on biomass sources for producers and manufacturers (http://www.biomassenergycentre.
Clearly both Europe and the UK sees a great future in this industry. The above is all proof that Canadian business models, particularly here in BC, need to be reassessed and updated. While it may be true that it has not been cost-effective, even as recently as this past summer, to bring some of the large amounts of biomass strewing our forest floor roadside, this is certainly no longer the case. Demand from various interested parties is only going to grow. As gathering and transportation techniques are perfected, the cost/benefit analysis will turn greatly to the favour of suppliers.

Japanese Earthquake Test

A unique simulated earthquake test of BC hemlock products specifically designed for the Japanese housing market was done this week. Using one of the most powerful three-dimensional seismic shake table facilities in the world, located in Tsukuba, Japan, a full-sized three-storey post and beam traditional house survived the test with flying colours. A video of the Japanese test shows how coastal hemlock can withstand the strong seismic forces that levelled Kobe in 1995.
Working together, Japan’s Building Research Institute, the Centre for Better Living and the Public Works Research Institute, UBC’s Department of Wood Science and the forest industry conducted the test to document how coastal hemlock structural products, known as Canada Tsuga in Japan, and Canadian engineered oriented strandboard perform in some of the most severe seismic forces ever recorded. The Governments of BC and Canada, through Forestry Innovation Investment Ltd. and the Canada Wood Export Program, have provided significant financial support in the research that led up to this test.

Chinese Wood Framed Home Building

British Columbian wood products and building expertise are helping Mongolia alleviate an urban housing crisis. Under an agreement signed last year between BC and Mongolian government, the British Columbia Institute of Technology helped Mongolia update its residential woodframe construction building code to Canadian standards and provided training and technical support.
Two demonstration homes were built from BC wood products, showcasing how the new building standards can be applied to local needs. The homes will be used to promote residential wood-frame housing and for training in construction and related trades. More than 1,000 potential home buyers have already toured the homes in the weeks leading up to the official opening.
Forestry Innovation Investment funded the project as part of their ongoing efforts to introduce wood-frame housing to developing economies. BCIT also provided training and technical support for the Indonesian project, which has resulted in two BC companies building about 800 new homes that use wood products from BC mills.

Mackenzie Pulp Mill

The new owners of the bankrupt Pope & Talbot’s former pulp mill in Mackenzie, BC this week informed the union that they will slowly ramp up the mill with an aim of producing pulp by mid-November.
Worthingtom Properties
The first part of the plant that would be restarted is the power boiler, possibly by the first week of October.
An important outstanding question for the pulp mill’s operations is where it is going to source wood chips now that Canfor’s Mackenzie sawmill has been closed. A chip supply deal with former pulp mill owners Pope & Talbot was not upheld in a BC court ruling this summer.

Pine Beetle Money

The upcoming federal election is proving to be a bonanza of promises for funding of all kinds. Another $250 million was slated this week to go towards research, and assistance for the communities hardest hit by the devastation of the mountain pine beetle. However very little of the funds already promised over a year ago have actually been allocated.
More Money Promised
The Liberal Party is pledging $250 million over four years in new funding in the battle against the pine beetle. Madison’s wonders at these further promises for more money, when the vast majority of the vast majority of the some $500 million already promised has yet to be allocated. There has been some very interesting research projects going on in conjunction between the University of Northern British Columbia and the University of Alberta, but that only accounts for less than $100, 000.
Prince George built itself a brand-new airport with a portion of its share of the money. Officials justified such use of the funds by saying the aiport expansion will provide new jobs locally. Jay Hill MP commented: “Expanding the Prince George Airport is part of a comprehensive response to the Mountain Pine Beetle infestation. This airport expansion is important for our region’s economic future and will be critical to ensuring long-term, sustainable economic growth.”
The Tories originally campaigned they would commit $1 billion over 10 years for pine beetle funding to help B.C.’s ravaged forests. Once elected, only $450 million was budgeted and only $200 million of that has been spent so far. In related news, a pilot project has been announced using salvaged beetle-kill wood as newsprint. Under a $28-million, three-year research project, new moisture sensors developed at the Edmonton-based Alberta Research Council are going into the Alberta Newsprint Company’s Whitecourt plant.
Bio-Energy Money
Another election, this time in British Columbia, brought it’s own announcements of funding for the forestry sector. The Ministry of Forests and Range has initiated a comprehensive plan for research and developing in the rapidly growing bio fuels field, with a plan to use bio mass left behind after logging, and also forests killed by the pine beetle. Wood pellets are included in the research package.
R&D Funds Announced
British Columbia’s Ministry of Forests and Range has provided $300,000 to the FPInnovations forest research institute, $200,000 to the University of British Columbia, and $100,000 to the University of Victoria for a research partnership focused on feedstock availability, harvesting and delivery equipment and systems, and economic analysis.
“Biomass-to-energy conversion is rapidly gaining interest because of rising fuel costs and concerns related to emissions and climate change,” said Tony Sauder of FPInnovations. “Our research is dedicated to the supply side of forest feedstocks. It will provide government and industry with harvesting and delivery data needed to help encourage biomass utilization in B.C.”
“This funding will help our consortium of scientists continue their leading-edge research into new uses for wood biomass resources in the quickly emerging bio-industry,” said UBC biomass and bioenergy research group principal Dr. Shahab Sokhansanj.
Specific topics include:
· Assessing inventory supplies by region and timeframe,
· Developing a model to estimate costs for delivering wood biomass resources in areas with different terrain and climate conditions,
· Assessing forest transportation infrastructure,
· Return on investment from recovering different sources of wood biomass, and
· Expanding wood pellet markets. For more information on the strategy, or to download a copy, visit
The report explains that the opportunities to use both wood waste and mountain pine beetle damaged timber are endless. The City of Revelstoke is a leader in bioenergy. Wood waste from a local sawmill fuels a biomass boiler that enables the municipality to recover heat in the form of low pressure steam for drying lumber at the sawmill and providing hot water to a community energy system for buildings in the downtown core. The Revelstoke community energy project, in operation since 2005, increases energy efficiency, reduces wood waste from sawmills and improves local air quality. Significant progress in using renewable fuels has already been made is several BC regions, including Vancouver, Richmond, Whistler, Delta, Burnaby and North Vancouver, which are using biodiesel in their fleet vehicles, as well as BC Transit and other commercial fleets.
British Columbia has an abundance of underutilized wood in the form of sawmill residues and logging debris, and a growing supply of timber killed by the mountain pine beetle. British Columbia currently leads the nation in wood energy production and consumption. However, it is estimated that about 1.2 million bone-dry tonnes of mill residues per year – an amount that could produce approximately 1,900 gigawatt hours of electricity – are incinerated in beehive burners in the province with no energy recovery and impacts on air quality. Wood pellets are produced from wood residue collected from sawmills and wood product manufacturers. Heat and pressure are used to turn wood residue into pellets without chemical additives, binders or glue.

Investing in Forestry

The fourth annual “Who Will Own the Forests?” timberland investment conference in Portland, OR, this week was sold out to capacity. In fact organizers had to turn late registrants away. While Canadian wood products manufacturers and distributors lament current horrible market conditions, long term investors with vast amounts of ready money look to the sector for stable investment. Interested specifially in buying at a discount and waiting several years for projected solid returns of between five and 11 per cent, such groups of investors can literally not wait to put money into distressed operations.
Wood Products
There is an obvious advantage to getting financially involved in forestry right now, which is not lost on the significant number of groups, funds and agencies the world over looking to gain ground floor entry before there is even a suggestion of the lumber market turning around. Whether it be buying timberlands, lumber producers or breaking into new remanufactured commodity markets, investors have their cheque books out.
Having just returned from a major timberland investment conference in Portland, OR, Madison’s can say for a fact that the sharks are circling the tank looking for a place to put their substantial funds. It is important to remember that in the scope of all of this wild searching for the “next big thing” in which to dump money, these types of investors and fund managers are not typically looking for a return in the next six months. Good news for the wood products industry in Canada, because the market has another couple of years of this downturn at least – all things remaining equal – before demand increases enough to bring commodity prices up to healthy levels.
That is why right now is a perfect time to invest: the situation is so dire, money is so tight, bottom lines are so dismal, that everything from operations to equipment to entire mills can be bought for a song. Its simply a matter of putting the appropriate parties together. Attendees of this particular conference themselves would not necessarily be interested in what Canada has to offer, given that our land – generally speaking – is publicly owned and our largest wood products export customer is the United States. The interests represented at the conference were looking to buy up timberland, as a proven long-term, stable investment with proven returns of between five and 11 per cent. Thus their eyes were carefully scanning over the rapidly depleting large plots of US timberlands while also looking globally into so-called “emerging markets” (Brazil, New Zealand, parts of Asia and Africa).
Mandates and requirements varied, but terms like ‘sustainable’, ‘environmentally sound’, ‘forward looking’ and ‘high employment standards’ were almost universal among the various groups. All of these conditions are already met here in Canada, if not exceeded, in terms of global standards. The volume of interest and of information was so great that it can not be contained within just one issue. In the coming weeks we are going to be looking very closely at the various speeches and presentations given at the conference, as well as suggestions and ideas bandied about by attendees, and bringing our readers closer to finding new product solutions, new markets, and new investment interest for themselves.
As demonstrated by the aggressive – and rather brilliant – business plan of Conifex Inc. to buy up shuttered Canadian mills, get them up and running immediately AND embark on intensive capital investments for upgrades, right now is the best possible time to get involved in forestry. The worst of the downturn is likely over. The fact that any significant revival is a few years away does not act as a deterrent for these types of investors, in fact makes the sector even more attractive because speculators are not interested therefore would not have a volatile or emotional impact on returns.
So where can Canadian wood products companies look for new markets or investment, if not to the attendees of this particular conference? The possibilities are so huge they would not even fit on this page; many of them have already been covered in earlier issues. Green gasoline, biofuels, other uses for biomass, cogeneration, pellets, remanufacturered products not currently made on a large scale in Canada but for which there is an enormous global market, are but a few. In addition there are new markets for Canadian wood – or indeed Canadian experience and skill – such as Indonesia, China, Russia and parts of Africa. While it is true that these are the precise countries that want to open up new production locally, at most using North American logs, rather than importing finished products, it is also true that the sector is so new to these regions that they are literally fumbling around in the dark.
Madison’s had a rather extensive conversation with three Chinese executives of a German forest products company at this conference who asked, “What is the difference between timber and lumber?” This is not a joke, and they were already doing business in China. Imagine the possibilities of consulting, training or simply exchange that could happen between the thousands of new wood production interests in emerging markets and experienced businesses in North America. The three fellows were greatly surprised to be told by Madison’s that, generally speaking, Chinese mills right now are laughably out-of-date and inefficient.
When told that out of all the Canadian mills that have closed in the past 18 months they exclaimed, “What!? Really? Canadian mills are closing??” (Madison’s had trouble keeping a straight face at that comment), then expressed wonder when told that only two or three of those mills were actually dismantled with the equipment shipped overseas, often to China. “Really? China is buying old mill equipment from Canada??” This is but one small example of people the world over with divergent interests and extremely large bank accounts (this is also not an exaggeration, figures of multiples of billions of dollars were the standard amounts discussed) already involved in the forestry industry in some capacity or another.
Our attitude at Madison’s is that this is a potential gold mine for anyone working in that sector here in North America who is just trying to find something else to do for the next few years before they can start pumping out 2×4’s again.

Global Pulp & Newsprint

The sale price of bankrupt Pope & Talbot’s former Mackenie pulp mill to Alberta’s Worthington Properties has dropped from $20 million to $6.5 million due to the cancellation of a chip supply deal with Canfor Corp. Canfor bought out of the agreement with receiver PricewaterhouseCoopers this week for an undisclosed amount. Finnish paper makers UPM-Kymmene Corp. and Stora Enso Oyj each announced mill closures this week, putting a total of 3,300 employees in Finland, Germany and Russia out of work.
Paper Production
Stora said it also plans to transfer 1,450 employees in 2009 to a joint venture with Swiss-Swedish electrical engineering company ABB Ltd., and invest €135-million to improve efficiency. UPM said it plans streamlining measures that would save €70-million in fixed costs. UPM said, “In Finland, wood prices have increased to such a high level that profitable operation of all our units is no longer possible. Markets are slowing down, and there is overcapacity.”
Stora and UPM have both said that paper deliveries will be down in 2008, partly caused by hikes in wood export tariffs by Russia, a major supplier for companies in Finland and elsewhere in Europe. Prime Minister Matti Vanhanen called a special Cabinet meeting to discuss the layoffs and problems faced by the forest industry, which provides work for 10 per cent of the country’s labour force and accounts for 20 per cent of exports.
Finance Minister Jyrki Katainen said the government had set aside emergency funds to deal with such crises. Stora Enso is one of the world’s largest forest product companies making magazine paper, newsprint, fine paper, pulp and packaging boards. It employs 36,000 people in more than 40 countries. UPM has production plants in 14 countries with 170 sales and distribution companies worldwide. It employs some 27,000 people, down from 29,000 a year ago.
The slumping global economy and changes in technology have reduced demand for paper, leading to production cuts around the world, including Canada, where mills have temporarily cut output or shut down permanently.

Conifex Inc’s. Future Plans

Yet more progress with another former Pope & Talbot facility, this time a primary mill in Fort St. James, BC, was made when receiver PricewaterhouseCoopers announced it would be handing over the keys to the mill to Conifex. Newly formed in 2006 with the intention to buy $266 million in assets from Domtar Corp, a deal which later fell through, Conifex has loudly announced its intention to invest heavily in Canadian mill operations during this time of low lumber prices.
Canadian Lumber Investment
Now could not be a better time to start a forestry company, according to Conifex Inc. Chair and CEO Ken Shields. The past Director of TimberWest Forest Corp, Slocan Forest Products Ltd. and Pacifica Papers Inc. and non-executive Chair of Raymond James believes a bonanza is in the making. He told the Globe and Mail in a July interview that, “We expect the supply of lumber to be contracting at the same time demand grows. What we wanted to do was get a position now when our entry costs are modest compared with what they have been and be well positioned for the turn, when it comes.” Conifex aims to reach a capacity of one million board feet in three years, said Shields.
This summer Conifex offered $12.8 million for the bankrupt Pope & Talbot’s former Fort St. James mill in northern British Columbia. The deal also include $3 million in liabilities, including reforestation and environmental expenses. Receiver Price- WaterhouseCoopers transferred ownership to the company on August 22. The timber license was signed and approved on August 15. The sale means that Conifex will be able to commence logging and start up the sawmill operations as soon as possible.

Nanaimo Forest Products Meets Deadline

Just a couple of weeks after the bankrupt Pope & Talbot’s former Mackenzie pulp mill was sold to an Alberta real estate company, which intends to reopen the plant immediately, the sale of Harmac – another former P&T pulp mill – in Nanaimo was complete. Despite objections by receiver PricewaterhouseCoopers and a higher bid by an aggressive prospective purchaser, a partnership headed by an employee group completed its purchase.
Harmac Pulp Mill
The Sampson Group, a Vancouver based family company involved in oil and gas exploration and development in BC, joined in the bid to restart and operate the aging mill. Other partners include a group of Harmac’s employees and managers, Williams Lake-based Pioneer Log Homes and Fraser Valley construction company Totzauer Holdings.
The four partner groups that make up Nanaimo Forest Products became the proud new owners of the Harmac pulp mill on August 29, meeting the court-ordered deadline to come up with the $13.2 million purchase price. Levi Sampson, from the Sampson Group and now the official spokesman for the NFP, said all aspects of the deal came together in meeting the August 29 deadline. Sampson said the NFP is putting together a board of directors of eight to 10 members involving all four investor groups, each expected to own 25 per cent of the mill.
NFP hopes that with the deal inked last month with Western Forest Products to continue to provide vital wood fibre to Harmac, combined with wood chips shipped in from Pioneer Log Homes operations and a portable chipper set up at the mill site by Totzauer, Harmac should have enough fibre to start up at least one line this fall. Sampson said while NFP will focus at first on starting up production of its traditional northern bleached softwood kraft pulp product, the company doesn’t intend to “turn a blind eye” to other options at the mill and its property.
Workers will each be expected to pay $10,000 up front before beginning their jobs, and the rest in of the $25,000 investment will be made in $5,000 installments that will be paid over time. The total contribution from the workers toward NFP’s successful bid for the mill is expected to be about $7 million. About 160 workers will be called back to work in the beginning of operations that will see one of the three lines at the mill producing northern bleached softwood kraft pulp, and approximately 220 workers will be required when the mill expands to two lines at a time yet to be determined. All rehired workers must also comply with the decision of NFP to eliminate the potential liability for outstanding vacation pay owed to Harmac employees, estimated to be about $6 million.

US Forest Products Sector

A U.N. Economic Commission for Europe (UNECE) report released on August said that the US housing market crash has hit the North American forest products sector, with the price of some wood products falling to a 17-year low. The UNECE, which covers North America, Europe and the former Soviet Union, said in its Forest Products Annual Market Review that prices for some products such as sawn wood had fallen in North America to their lowest levels since 1991.
The unprecedented drop of more than 50 per cent in US housing starts between 2005 and those estimated for this year has hit North American sawmilling output, with up to one quarter of North American capacity curtailed or closed to accommodate the lower demand. An 11 per cent fall in North American output to 109 million cubic meters in 2007 meant that European production was greater than that of North America for the first time, the report explained.
The report noted that wood costs for the global pulp industry have increased to new records in 2008, with the biggest increases seen for softwood fiber in the western United States, Spain, Chile, Finland and Japan. Higher energy costs have also pushed up pulp and paper prices. The European construction market is forecast to continue falling to the end of 2010, driven by a dramatic reduction in new residential construction in western Europe, after falling 2 percent in 2007 from its 2006 peak.
European sawmill revenues fell in mid 2007 after a profitable 2006, putting the industry in a more difficult financial situation by the middle of this year. Chinese demand for raw materials is providing some support to producers, but Chinese processors are increasingly present as competitors for finished products. Expanding capacity in China is having a huge impact on paper and paperboard markets and global competition for wood and pulp, while the weaker dollar has boosted US exports.
For the full report visit trade/timber.

Japanese Spruce Imports

June housing starts in Japan showed the only growth to be in wood-framed homes, up for the third straight month, by 6 per cent. Local factories in producing centres announced deficits in WSPF 2×4 lumber.
WSPF 2×4’s Into Japan
Demand for wood framed apartments, which are used as temporary residences for students and employees working away from home, has been on the rise. Businesses that construct apartments for rent are amongst the only builders in Japan currently showing favourable financial results.
The Japanese import price of Canadian SPF dimension lumber levelled off in August to US$465 mfbm for 2×4 to 2×8, and to US$565 mfbm for 2×10’s. However major curtailments and production cuts across Canada are causing a potential threat to import supply for Japan.

Tembec Curtails Pulp Facilities

Fast on the heels of dismal 3Q 2008 results, Tembec Inc. announced this week two temporary pulp 0mill closures in Quebec and France, reducing output by 16,500 tonnes. The company’s Temcell hardwood pulp mill in Temiscaming, QC, will be offline for one week, while its softwood kraft pulp mill in Tarascon, France, will be idled for two weeks. This week European NBSK softwood kraft prices continued to slide, down US$8.93 to US$876.72 (still up US$5.56 from the beginning of the year). SOURCE:
One day earlier Tembec’s 3Q financial results were released, showing a loss of $27 million from $164 million a year ago, when it took a $173 million charge for an idled paper mill in Louisiana. Sales fell to $609 million from $712 million as a result of lower volumes in all four of its operating segments: lumber, pulp, paper and chemicals. News services in the United States were thrown into a bit of confusion Thursday when Tembec filed a chapter 15 petition. Several American news reports stated that the company was filing for bankruptcy protection, when in fact the filing was merely intended to give effect to a sanction order issued under the Canada Business Corporation Act and did not affect the rights of any creditors or shareholders.
According to a company statement, “The filing today simply closes a procedural loose end related to the recapitalization” said James Lopez, President and CEO of Tembec. “It is not in any way a material event and does not in any way affect the business or the financial condition or anything else related to the newly recapitalized corporation.”