|
ENRON TO SUPPLY ELECTRICITY TO CANFIBRE FIBERBOARD PROJECT
FOR IMMEDIATE RELEASE: Wednesday, September 10, 1997
HOUSTON -- Enron Capital & Trade Resources Corp. (ECT), a subsidiary of Enron Corp., announced today that it has signed a ten-year agreement to provide electricity to the nine megawatt CanFibre medium density fiberboard (MDF) facility currently under construction in Riverside, California. ECT announced the agreement at a groundbreaking ceremony held today in Riverside which was attended by Governor Pete Wilson and other state officials.
Scheduled for completion in late 1998, the CanFibre facility will be the world's first MDF facility completely unreliant upon the cutting of trees, making fiberboard using 100 percent recycled waste wood and a patented steam injection system that eliminates the use of harmful urea formaldehyde. The plant will save thousands of trees per year and significantly reduce the amount of waste wood sent to California landfills. MDF is a composite wood panel used in the manufacture of furniture, cabinets, and moldings.
"We are delighted to take part in this project and the opportunity to provide financial and energy resources to a retail industrial customer for the first time in California," said Kenneth D. Rice, chairman and CEO, ECT-North America. "This project creates more than 70 new jobs in the state while helping to preserve the environment."
As announced in July, ECT invested $21 million in Kafus Capital Corporation, the parent company of CanFibre. Kafus has invested the majority of the proceeds from ECT into the CanFibre Riverside project. The $120.5 million CanFibre project was funded through $85 million in U.S. bonds underwritten by Merrill Lynch, $25 million of which were purchased by ECT; $15 million in subordinated debt purchased by ECT; $3.5 million in preferred stock issued by CanFibre; and $17 million in equity provided by Kafus.
Headquartered in Canada, Kafus Capital Corporation is the parent company to the CanFibre Group Ltd. Kafus is in the development stage of becoming a global low-cost producer of commodity-style products based entirely on the use of post-consumer and industrial wastes and other non-conventional production raw materials. Kafus is traded on the American Stock Exchange under the symbol "KS," on the OTC Bulletin Board under "KFSSF," and on the Canadian Dealing Network under "KFSS."
CanFibre Group Ltd. was formed in 1992 to commercialize a technology to convert mixed dry waste such as waste wood, cardboard, and newspaper into medium density fiberboard. CanFibre is traded on the Canadian Dealing Network under the symbol "CFGL."
Enron Corp. is one of the world's largest integrated natural gas and electricity companies with approximately $19 billion in assets. Enron Capital & Trade Resources Corp. (ECT) is a leading provider of physical and financial energy products worldwide. Enron's internet address is www.enron.com and its common stock is traded on the NYSE under the ticker symbol "ENE."
For additional information please contact:
Terrie James
(713) 853-7727
 |
