Domtar, a Canadian fibre innovator, has secured C$28.8m (£17.5m) in funding from the Canadian government to upgrade its Espanola paper mill and commercialise a new technology that could replace single-use plastics.
Image: Domtar’s new technology will enable production of new products that will replace use of single use plastics. Photo: courtesy of Domtar Corporation.
Announced by Nickel Belt Minister of Rural Economic Development parliamentary secretary Marc Serré, the funding will support Domtar’s C$57.5m (£35m) project to implement new equipment and processes at its pulp and specialty paper mill located in Espanola, Ontario.
The investment project aims to commercialise its new Stealth Fiber Technology, which is designed to produce stronger paper.
The technology also enables the production of innovative products that can replace single-use plastics such as medical packaging and food wrap.
In addition to increasing Domtar’s competitiveness in the global market, the project is expected reduce production waste and reduce greenhouse gas emissions by 48,000 tonnes annually at the Espanola mill.
In addition to helping to maintain the 430 jobs at the mill, Domtar is planning to invest more in research and development.
Serré said: “Our government is proud to invest in innovations at Domtar that will increase the Espanola Mill’s competitiveness in the global market, reduce waste from production and reduce greenhouse gas emissions. It’s a win-win project for this community.”
Canadian Minister of Innovation, Science and Economic Development Navdeep Bains said: “Through this investment, Domtar will be able to commercialize innovative products that could help reduce our use of single-use plastics, while reducing its environmental impact.”
The government made the investment in the company through the Strategic Innovation Fund, a program aimed to attract and support business investments in Canada.
Domtar pulp and paper division president Michael Garcia said: “We are pleased to partner with the Government of Canada on this important initiative to upgrade the Espanola Mill’s infrastructure and improve its environmental performance. This investment will help the mill deliver technical innovation to produce products that could help reduce the use of single-use plastics.”
Upgrades to the Espanola Mill will also result in improved air quality and reduced noise pollution for the people living in and around Espanola.