$7 million in funding for Groupe Savoie pellets

From left: Senator Percy Mockler, Jean-Paul Savoie of Groupe Savoie, and New Brunswick Premier Shawn Graham.

Nov. 11, 2009, Saint-Quentin, NB – The federal and provincial governments are making a
$7-million investment in Groupe Savoie. The investment will allow the
hardwood processing company to diversify its operations and markets by
establishing a wood pellet and briquette manufacturing plant.

"Our
government will seize every opportunity to create and maintain jobs for New
Brunswickers," says New Brunswick Premier Shawn Graham. "Strategic investments such as these,
coupled with our plan for lower taxes and the lower rates that would occur
under our new proposed energy agreement with Hydro-Québec, will make us more
competitive and ensure that more New Brunswickers are employed."

The
Province of New Brunswick is providing $5 million toward the $11-million
project through a nonrepayable contribution and a loan.

"The
Government of Canada, through the Economic Action Plan, is taking steps to
stimulate the economy, create jobs and support communities hardest hit by the
global economic downturn," says Senator Percy
Mockler. "Our investment of $2
million through the Community Adjustment Fund (CAF) will allow Groupe Savoie to
provide important construction employment opportunities and help maintain more
than 500 jobs in the forestry sector while creating an additional 17 full-time
jobs and acquiring new technology for the company." Mockler attended on
behalf of Keith Ashfield, minister of state for the Atlantic Canada
Opportunities Agency (ACOA).

The
funding will allow Groupe Savoie to purchase and install equipment and provide
training for a wood pellet and briquette manufacturing plant that it will build
next to its existing hardwood operations in Saint-Quentin. Groupe Savoie's
existing operations will supply the sawdust, shavings, bark, and chips needed
to manufacture the wood pellets and briquettes and allow them to produce an
estimated 50,000 tons of pellets and 8,000 tons of briquettes. Export sales are
expected to reach more than $9 million.

"We
are very pleased that the two levels of government have confidence in us and
are willing to put in the hard yards to enable us to ensure business continuity
at Groupe Savoie," says Jean-Claude Savoie, president of Groupe Savoie.
"Investing in this green energy project, the products of which will
initially be mostly exported to Europe, will help make our beautiful province
greener. One day, in what I hope is the not too distant future, these granules
will be used as a source of energy and will replace heating oil on this side of
the Atlantic. We have shifted toward value-added products for years now, and
this is another good example."

The
Government of Canada, through ACOA, is contributing $2 million toward the
project under the CAF. Canada's Economic Action Plan provided a total of $1
billion over two years for the CAF to support initiatives that help create and
maintain jobs in communities affected by the economic downturn. Atlantic
Canada's allocation of $100 million under the CAF is administered by the ACOA.