Prime Minister Stephen Harper made Domtar's Green Transformation funding announcement during a quick stop in Dryden, May 22.

Prime Minister Stephen Harper himself announced funding for a project to increase energy self-sufficiency at Dryden’s Domtar pulp operations, May 22.

The $22.7 million project will be used to install a second steam condenser to operate its waste wood boilers at a higher capacity and its turbine more efficiently. A second high pressure turbogenerator will be installed to increase the production of electricity from high temperature steam generated by the recovery boiler.

The two measures are expected to generate 128,400 mega-watt hours of electricity per year – nearly balancing the mill’s production and consumption of energy.

“We are grateful to Natural Resources Canada for their support under this program,” said Dryden mill manager Jim Blight. “As we prepare the groundwork for this important mill upgrade and celebrate this announcement, we also recognize our people’s efforts to improve our safety performance and cost structure.”

Arriving under the banner of Centennial celebrations at the Dryden Air Show, the Prime Minister spoke on forestry’s importance to the history and the future of the area.

“The pulp and paper industry has been an important part of Dryden since it became a town back in 1910,” said Harper. “We are proud to mark the centennial of the city by helping ensure the Dryden Mill remains efficient, competitive, environmentally friendly and open for business well into the future.”

The idled Ear Falls sawmill as well as the rest of Domtar’s solid timber products division changed hands, Monday, as the company announced the sale of sawmill assets to Eacom, a new entrant to the forest industry.

Operations have been suspended at the Ear Falls facility since August 2009.

Other mills included in the transaction include Timmins, Nairn Centre and Gogama in Ontario, as well as Val-d’Or, Ste-Marie and Matagami in Quebec. Eacom has also purchased an equity interest in an eighth Domtar sawmill, in Elk Lake, Ontario.

The assets will include the transfer or grant of tenures to enable production at the mills. The sawmills transferred as part of the transaction represent approximately 3.5 million cubic metres of annual logging rights and a production capacity of close to 900 million board feet.

The $80 million transaction plus working-capital elements estimated at $30 million to $40 million is expected to be finalized over the summer.

Eacom, now based in Vancouver, will establish its headquarters in Montreal, QC and will become one of the largest publicly-traded lumber producers in Eastern Canada. Domtar forest products employees and its management team will be transitioning to EACOM.

“With this acquisition we pursue our vision of becoming a major softwood lumber producer and we look forward to integrating Domtar’s leading wood products management team to ensure a smooth transition. We recognize that customers have choices in wood products suppliers, and we will work hard to secure their business, notably through our continued commitment to the FSC-certification,” said Rick Doman, President and Chief Executive Officer of Eacom Timber Corporation in a statement.