Canfor Pulp is investing $160 million in upgrades by 2012 to set the foundation to spend a similar amount of money in the following three to four years to build a new green-energy business.
That green-energy business is meant to generate $30 million to $50 million a year, Canfor Pulp president and CEO Joe Nemeth said today during a conference call to discuss the company's $178 million 2010 profit.
While Canfor Pulp, which operates three pulp mills in Prince George, has previously discussed the strategy, it's the first time it has provided details on the scale of the green-energy business. The new business is meant to provide stability to the company's three pulp mills in Prince George, which employ about 1,100 people.
"What makes it really exciting is [the green energy business] is a fixed-price, stable business, so it offsets the cyclicality of pulp," said Nemeth.
