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Tembec Plans Newsprint, Lumber Downtime in Ontario

March 24, 2009 - Tembec said that it will take market related downtime at its operations in the Kapuskasing region (Ontario, Canada). The shutdown begins on April 9 and will be for a minimum of four weeks, affecting approximately 510 employees at all levels of the organization — from the sawmill, newsprint and forestry operations.

"The curtailments announced [March 23] are a direct reflection of the challenging market conditions facing both lumber and newsprint and the related need to manage inventory levels and working capital," said Terry Skiffington, vice president, Newsprint Operations, Paper Group.

"The newsprint operations at Kapuskasing have made significant progress in terms of improved productivity. These efforts by our employees, combined with positive actions taken by the Province of Ontario to reduce the effective price of electricity, have helped to improve the cost position of the newsprint mill significantly. Such positive actions have been and will continue to be integral to the competitive position of this site," Skiffington said.

"However, the current and foreseen market conditions are such that this curtailment is unavoidable," Skiffington added.

The curtailments are expected to result in lost production of 20,000 tons of newsprint and 8 million board feet of lumber, Tembec said.

SOURCE: Tembec




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