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Tembec to Extend Idle Period of Newprint PM in Ontario

April 21, 2008 - Tembec yesterday said that it will extend the indefinite idling of paper machine #3 at its Kapuskasing, Ontario, newsprint mill.

The decision will affect approximately 40 unionized and staff employees, Tembec said.

PM #3, which was initially idled in October 2007, has an annual capacity of 100,000 tons.

"The extended idling of paper machine number 3 is driven by a shortage of economic fiber supply," said said Chris Black, senior vice president of Tembec's Newsprint Division.

"The low operating rates of regional sawmills in Northern Ontario, stemming from the dramatic decline in the level of U.S. housing starts, continues to restrict the availability of fiber," Black said. "Over the long term, the issue will be the availability of economic fiber, the overall cost competitiveness of the site and the dynamics of the North American newsprint market."

In addition, Tembec's management has proceeded with an internal reorganization to adapt to current and foreseen operating levels at the mill.

SOURCE: Tembec

See related story:
- Tembec to Indefinitely Idle Newsprint Machine in Canada (10/15)




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