The Aditya Birla Group and Tembec Inc., a US $ 2.5 billion Canadian integrated forest products company have, in a joint venture, acquired the St. Anne Nackawic Pulp Mill, now christened AV Nackawic Inc. The Aditya Birla Group holds 75 per cent in the joint venture, with the balance 25 per cent with Tembec. This marks the second acquisition by the joint venture, strengthening the Group's strategic hold on the most important raw material for its VSF operations.

On acquisition, commercial production commenced at the St. Anne Nackawic pulp mill in New Brunswick to produce Paper Grade Wood Pulp. A project to convert the mill’s output into Dissolving Grade Pulp is underway, with initial production scheduled for early 2008. The entire produce of DG Pulp from
AV Nackawic will be consumed within the Group’s fibre units in India, Thailand, Indonesia and China.

The mill will produce 800 tpd of paper grade hardwood pulp and will be converted to produce 600 tpd dissolving grade.