Oct. 15, 2007 - Tembec has announced [on Oct. 12] an indefinite idling of paper machine No. 3 (PM 3) at its Kapuskasing, Ontario newsprint mill, effective Tuesday, October 23, 2007.

In a separate decision, the Company also announced the indefinite shutdown of its sawmill located in Cochrane, Ontario, starting October 19, 2007.

"The indefinite idling of PM 3 is necessary due to a combination of poor newsprint market conditions and a wood chip shortage that has occurred largely as a result of the numerous sawmill curtailments in Northern Ontario," said Chris Black, senior vice president, Newsprint Division. "The company has reviewed alternate sources of fiber supply however, all options were detrimental to the mill's financial performance."

PM 3 has an annual capacity of 100,000 tonnes, Tembec said.

The idling will impact approximately 50 employees across the site, the company added.

Cochrane Sawmill
"The indefinite shutdown at the Cochrane sawmill is being taken due to a combination of factors," said Dennis Rounsville, executive vice president and president of Tembec's Forest Products Group. "These include poor demand for lumber, declining product pricing and the continued impact of the high value of the Canadian dollar."

The Cochrane sawmill has an annual production capacity of 150 Mfbm of SPF lumber and employs approximately 150 people.

SOURCE: Tembec Inc.