Tembec to Cut Pulp Production on Weak Demand
Sept. 2, 2008 - Tembec today announced limited production curtailments at two of its pulp mills in order to balance inventory levels.
The company's Temcell hardwood high-yield pulp mill located in Temiscaming, Quebec stopped production on August 31 for one week, while its softwood kraft pulp mill located in Tarascon, France will be idled for two weeks beginning September 10.
These curtailments combined will reduce output by 16,500 tonnes, Tembec said..
"The late summer period typically represents a period of lower demand for pulp. We are seeing this occurring in Europe and areas of Asia, driven in part by annual vacation shutdowns in pulp consuming businesses," said Yvon Pelletier, executive vice president and president of Tembec's Pulp Group. "Further, we are experiencing lower demand from our customers."
The Temcell operation produces 300,000 tonnes of hardwood high-yield pulp annually and Tarascon's yearly production amounts to 260,000 tonnes of softwood kraft pulp.