Re-launching the Davidson factory
Company would need a ’’guarantee of supply’’ to open the Davidson Sawmill
Article published on 3 March 2020
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The Davidson sawmill revival project is still ongoing.

On Monday, March 2nd, about twenty potential investors were invited to a private meeting to present the project along with its current challenges regarding the implementation of the cogeneration project. Those invited were able to learn that the financial arrangement, according to the main spokesperson of the project, Bruno St-Cyr, is now sufficient to move forward with the cogeneration plant and the revival of the sawmill.

However, the company is awaiting a “guarantee of supply” of timber intended for the Davidson sawmill.

In fact, the Davidson sawmill does not have this guarantee of supply. The current investors are hoping to obtain it, as it is the last major element missing in order to move forward with the recovery, according to Bruno St-Cyr.

The company still has a supply of pulpwood for the cogeneration plant, but this would not be sufficient as the investors need an assurance of synergy between the Davidson sawmill and cogeneration, to ensure the profitability of operations. The investors are leveraging the support of local entrepreneurs to demonstrate to the government a need to provide a guaranteed of lumber supplies to move forward with this project, described by investors as structuring for the Pontiac.

The re-launch of the Davidson project is estimated at approximately $ 68 million, which includes the section of the cogeneration plant for Davidson Energy, and the Davidson sawmill. According to the deadlines submitted this Monday, if the company obtains the guarantee of supply, operations could start in about two years. Meetings between investors and various ministries should take place in the coming weeks.

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