Tembec to Permanently Shut Smooth Rock Falls Pulp Mill
Dec. 5, 2006 - Tembec today announced the permanent closure of its market pulp mill in Smooth Rock Falls, Ontario. The mill had been indefinitely idled at the end of July 2006.
After a thorough analysis of the current situation, Tembec concluded that a sustainable and secure long-term operation of the mill would not be possible.
A total of 185 unionized employees and 44 staff will be affected, Tembec said.
"The vintage and scale of this mill and its manufacturing costs relative to global competition, including the availability of affordable fiber, were all key factors in this decision," said Yvon Pelletier, Tembec executive vice president and president of the Pulp Group. "After thoroughly reviewing current and future economic conditions, we have made the difficult decision to permanently close the mill.
"The company intends to act in a manner that will ensure that employees receive their severance pay in the next few weeks," Pelletier said. "The company will also take appropriate measures, including the provision of counselling and support services for affected employees," he added.
Tembec said it will incur an unusual charge of $31 million relating to pension, severance and other items that will be recorded in the quarter ending December 30, 2006.
The Smooth Rock Falls mill had the capacity to produce 200,000 tonnes per year of Northern Bleached Softwood Kraft (NBSK) pulp.
see related story:Tembec to Idle Ontario Pulp Mill at End-July (04/24)