Fortress Paper Provides Cogeneration Facility Update

Fortress Paper Ltd., Vancouver, B.C., Canada, reports that the high pressure water pump at its Fortress Specialty Cellulose (FSC) mill was reinstalled on July 12, and the cogeneration facility operated for 20 days before being shut down due to pump failure. The back-up high pressure water pump was then installed on August 5, and its operation was again unsustainable due to inadequate repairs. The company has already placed an order with another supplier for a high pressure water pump that is expected to arrive in approximately four weeks for installation.

Despite these setbacks, the FSC mill completed all major testing of equipment during the operating period. The facility successfully completed 18 and 24 MWH output testing. The company anticipates completing the final 100 hr. test as soon as the new pump is installed and tested. Fortress expects the cogeneration facility will be delivering power to the Hydro Quebec grid at the contractual rate within 24 hr. of completing the test.

Chad Wasilenkoff, CEO of Fortress Paper, noted that "although the performance of the repair by the supplier of the pump has been disappointing, we are pleased that we were able to complete all major testing of equipment. The company will proceed with an alternate pump supplier to complete the final 100 hr. test before delivering power to the Hydro Quebec grid and ultimately reducing our production costs."

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