A company set to further consolidate Quebec's forestry industry is said to have an opaque structure and to be linked to companies criticized for poor environmental practices, according to a 60-page report published by Greenpeace.
The report alleges that Paper Excellence's structure is opaque and linked to various entities incorporated in the Netherlands, Malaysia, the British Virgin Islands and Hong Kong.
It also alleges that the British Columbia-based company is linked to the Indonesian conglomerate Sinar Mas and its Asian Pulp and Paper division, which has been criticized for its environmental and social practices in Indonesia.
Founded in 2007, Paper Excellence Group has expanded into the Canadian forestry industry. It acquired Domtar last year. It also made a $2.7-billion bid for Resolute Forest Products last July. Shareholders are expected to vote on the offer on Oct. 31.
"With the acquisition of Resolute, Paper Excellence would become a major player in the Canadian forest industry," said Priyanka Vittal, a lawyer with Greenpeace Canada. "We are at a time when we need greater protection and monitoring of our forests. This company (Paper Excellence) does not have a fully transparent corporate structure."
Greenpeace is not alleging that the company is doing anything illegal or that the Resolute deal should be rejected, the lawyer said.
"It's just that we need to ask more questions and that we don't know enough. It's important that we have more information," she said.
Paper Excellence rejected the report's findings, according to the company's responses, which were transcribed in the report.
The Canadian Press was unable to obtain a reaction from Paper Excellence.
This report by The Canadian Press was first published in French on Oct. 25, 2022.
