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Tembec to Take Pulp Production Downtime at Matane Mill

Sept. 17, 2008 - Tembec today announced a one-week production curtailment at its Matane, Quebec pulp mill in order to balance inventory levels.

Tembec said that the Matane hardwood high-yield pulp mill will stop production on September 21 and will resume production on September 28, resulting in about 5,000 tonnes of product not being produced.

The downtime will, however, be used to conduct maintenance work, Tembec added.

"This latest production curtailment follows recent announcements related to our Temcell and Tarascon pulp operations and is intended to prudently manage both inventory levels and working capital. This decision comes amidst declining pulp demand in Europe and Asia, prime markets for our Matane pulp mill. The shutdowns announced to date will reduce our total annual production by 21,500 tonnes," said Yvon Pelletier, executive vice president and president of the Pulp Group.

The Matane mill has an annual production of 250,000 tonnes of hardwood high-yield pulp.

SOURCE: Tembec Inc.




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