Black Liquor is a byproduct of the chemical pulp-making process and since the forestry industy is feeling devastated, the U.S. alternate-fuel tax breaks offers big payouts for companies that use the pulp byproduct as fuel.
To qualify companies must prove they are using both conventional fuel and the black liquor in their boilers.
Because of this, it is possble to overproduce pulp, flood the market and depress pulp prices.
A vice-president at Domtar said the the numbers - on paper at least -"are very impressive, "the company remains cautious nonetheless" he said."
The PR: U.S government throws a lifeline out to the North American pulp/paper/lumber industry in troubled times.
Stakeholders:
Domtar Inc - Montreal based
JPMorgan Chase & Co.
Mercer International Inc. - Vancouver based lumber and pulp producer
International Paper Co. - U.S.
U.S. Internal Revenue Service
Message:
U.S. Tax credit offers big payouts to forestry companies
Audience:
Forestry Industry
Lumber and pulp producers
Wednesday, March 25, 2009
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Migizii Dodam
- CYNTHIA
- Wasauksing, Georgian Bay, ON, Canada
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