Flakeboard Co has been granted millions of dollars in aid by the New Brunswick government to install a new dry resin system which will boost efficiency at its MDF and particleboard mill in St Stephen.
The C$6.7m (US$6.6m) term loan was announced on June 27 by Premier Shawn Graham.
Kelly Shotbolt, president and ceo of Flakeboard, said at a joint news conference: “The company has developed leading-edge technology that will have an important impact on our costs, quality and productivity”.
Flakeboard manufactures a variety of particleboard, MDF and Fibrex high density thin fibreboard, using lumber industry by-products and low-quality or under-utilised wood species. The company currently employs 275 people in its St Stephen facility.