Montreal, Quebec, Canada, 31 January 2011 -- The Canadian government is giving Tembec CAD 18.9 million to improve the environmental sustainability of its pulp and paper mill in Matane, Quebec.

The money, from the federal Pulp and Paper Green Transformation Program (PPGTP), will help Tembec install new equipment that will reduce greenhouse gas emissions generated by its mill. The equipment also will allow Tembec to produce renewable biogas.

In addition to federal funding, the Quebec government, through l'Agence de l'efficacité énergétique, is contributing CAD 6.3 million to the project.

The PPGTP -- along with the Investments in Forest Industry Transformation program and other initiatives -- is part of the federal government's campaign to sustain and enhance Canada's forest industry.