Canadian hardwood flooring maker Lauzon Flooring said it has gained the support of the Quebec government for a key piece of an ongoing $50 million (CAN) "investment strategy" that includes an upgrade of the company's infrastructure. The 22-year old manufacturer said the provincial government has agreed to participate in the development of a new $19 million (CAN) "hybrid sawmill" to be located in Thurso, Quebec. The company noted that the Quebec government has approved Lauzon's wood allocation and harvesting consolidation strategy. The project is phase one of the company's overall strategy.

"Over one year ago, we undertook a rigorous study of the hardwood forest industry in our quest for continued innovation and excellence." said Michel Pitre, general manager of Lauzon division involved in the sawmill project "We concluded that our growth strategy must be channeled through innovative technology transfers and improvements of our hardwood manufacturing facilities and though the consolidation of wood allocation and harvesting contracts managed by the Quebec government.

"Securing the hybrid sawmill project in Thurso depended heavily on the support of both the government of Quebec and of Canada which explains why we have been promoting the project so eagerly since June 2005," added Mr. Pitre.

"To our knowledge, the Thurso hardwood converting process is unique in its kind in North America" he added.