Quebec loses $ 125 million with Kruger
The Legault government does not expect to review anytime soon the $ 125 million loaned to Kruger in its tissue paper manufacturing plant in Sherbrooke, announced in August 2018.
Share November 13, 2020 8:06 am Share Québec loses $ 125 million with Kruger The Canadian Press
Chloé Cotnoir La Tribune The Legault government does not expect to review anytime soon the $ 125 million loaned to Kruger in its tissue paper manufacturing plant in Sherbrooke, announced in August 2018.
Quebec took advantage of the economic update to take stock of the anticipated losses for investments such as the A220, Ciment McInnis and Kruger, which amount to approximately $ 1.4 billion.
It should be remembered that in the summer of 2018, the Government of Quebec granted, among other things, a loan of $ 105 million in the form of a debenture to a subsidiary of Kruger Products to support the construction of the new plant in Sherbrooke, a $ 575 million project to be create 180 jobs.
It should also be recalled that Kruger announced in September the closure of its Sherbrooke plant, whose production was devoted to newsprint, specialty papers and pulp. Nearly 200 workers lost their jobs. This closure in no way compromises the project for the new factory, however, assures the company.
Other investments, other losses
According to the document presented Thursday by the Minister of Finance, Eric Girard, the value of the investment made by Quebec in the ex-C Series of Bombardier has now fallen by $ 1.04 billion, or $ 434 million more compared to the last evaluation.
Since last February, the State, through Investissement Québec (IQ), has held 25% of the program controlled by Airbus, since Bombardier has left the adventure, in the wake of its refocusing on business jets .
Quebec is also counting on an “estimated loss” of $ 378 million for its investment in Ciment McInnis, the operator of the Gaspé cement plant in Port-Daniel which is the subject of rumors of imminent sale.
This complex of about 200 employees was accompanied by a hefty bill of $ 1.6 billion due to significant cost overruns. The Caisse de dépôt et placement du Québec (CDPQ) has also injected more than $ 450 million into this project since 2014.