Tembec Agrees to Sell Skookumchuck Pulp Mill for $89 Million

The Skookumchuck pulp mill in British Columbia has the capacity to produce about 250,000 tonnes per year of NBSK pulp.

March 26, 2013 - Tembec announced today that it has reached an agreement to sell its NBSK pulp mill and related assets and liabilities located in Skookumchuck, British Columbia (Canada) to Paper Excellence Canada Holdings Corporation for a purchase price of $89 million, which includes working capital.

Tembec expects to close the deal, which remains subject to certain conditions and regulatory approvals, in the second calendar quarter of 2013.

"This transaction supports the continuing transformation of the company and the reshaping of its business portfolio," said James Lopez, Tembec's President and CEO.

Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd. The mill, which currently employs 290 workers, started up in 1968 and has the capacity to produce about 250,000 tonnes per year of NBSK pulp. Its pulp is shipped to North American and Asian customers primarily for tissue applications.

Tembec is a manufacturer of forest products — lumber, pulp, paper and specialty cellulose — and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 3,700 employees and annual sales of approximately $2 billion.

SOURCE: Tembec Inc.