he first phase of the renewal consists of a new recovery boiler and a new turbine. Pulp production will remain on a level permitted in the current environmental permit. On 27 August 2019, the company announced that the competent authority in Sweden, Länsstyrelsen, had decided that the planned new recovery boiler will require an amendment to the environmental permit. At the same time, the company estimated that the final investment decision on the first phase of the renewal can be made in the second quarter of 2020, at the earliest. The company aims to minimize the delay in the start-up of the new recovery boiler and turbine due to the environmental permit process. This is to enable the introduction of new cleaner and more energy efficient technology as quickly as possible, and to minimize the production interruption risk related to the old recovery boilers. To reduce the delay, the company has selected the main equipment suppliers and will make certain financial commitments for the implementation phase of the project already at the end of 2019 and early 2020, although no final investment decision will be made prior to receiving the environmental permit. The total value of the commitments will be a maximum of EUR 100 million. The total value of the investment is estimated at approximately EUR 320 million.
Catalyst Paper Corporation (TSX:CYT) today announced that the U.S. Department of Commerce (DOC) issued Preliminary Results in its expedited review of Catalyst, finding that Catalyst received a negligible (de minimis) amount of subsidies during the applicable period of review and therefore, subject to confirmation in the DOC’s Final Results, Catalyst’s exports of supercalendered paper (SC) into the U.S. market would not be subject to countervailing duties.
“Today’s decision confirms that Catalyst did not receive any material subsidies from the Government of Canada or Province of British Columbia,” said Joe Nemeth, President & Chief Executive Officer.
Catalyst requested the expedited review, which looked specifically at the 2014 period, after the DOC imposed countervailing duties on SC paper imports from Canada in December 2015. Without individually investigating Catalyst, the DOC assigned the company an “all-others” countervailing duties rate of 18.85%, which was based on the weighted average of the rates determined for Port Hawkesbury Paper and Resolute Forest Products.
“The18.85% ‘all-others’ rate assigned to Catalyst painted an inaccurate picture of our business, and the manufacture and export of our high-quality paper products,” said Mr. Nemeth. “Catalyst has paid over $18 million in duties and legal costs since the countervailing duties were imposed. These costs have imposed a burden on Catalyst and our effort to improve our financial performance and competitiveness.”
The DOC’s Preliminary Results do not take effect until interested parties have had the opportunity to comment and the DOC issues Final Results scheduled for February 2017.