An Economy With Fiber

Textiles is not the only sector displaying tensile strength in the Québecois economy. Building on generations of forest products development, the province's wood and paper products industry continues to refine its approach and introduce new facilities to house its innovations.
        In May, Uniboard Canada, a subsidiary of German group Kunz Holding that operates seven plants in Canada, opened a new production facility that allowed it to double its annual output to 650,000 cu. m. (23 million cu. ft.). It was the culmination of a three-year, $77-million investment that made the plant Uniboard's largest, and the largest particle board facility in Canada, as well as creating 47 jobs.
        "Our decision to invest more than $120 million (US$77-million) in Sayabec secures the plant's long-term future and employment for more than 400 people, and enables us to accommodate our growing customer base," says Cam Gentile, president of Uniboard Canada.
        "Our industry is highly capital-intensive, and employees' skills can make all the difference," adds Dr. Wilhelm Dengler, CEO and vice president of the board of directors for Uniboard Canada. "Our production costs in Québec are 25-percent to 30-percent lower than in Europe. Since productivity is comparable to that in our European plants and given the lower costs for raw materials along with an expanding North American market, our activities are competitive in the North American environment."
        While no new facilities will rise, a $63.8-million investment in new equipment at the Kruger Wayagamack mill in Trois-Rivières is just the latest step in an overall revitalization of the facility, which was revived in 2001 by a $191-million investment. The additional investment will add 110 jobs to the 475 that last year's resurrection accomplished, while also bringing the plant's annual capacity from 134,000 metric tons to 334,000 metric tons.