Tembec to Idle Chetwynd Pulp Mill in September on Soft Markets

Tembec's Chetwynd high-yield pulp mill has an annual production capacity of 240,000 tonnes.

July 11, 2012 - Tembec yesterday announced that, due to market related conditions, it will indefinitely idle its high-yield pulp mill located in Chetwynd, British Columbia, Canada as of September 16, 2012.

A total of 115 employees are currently employed at the Chetwynd mill.

"The high-yield pulp market has continued to soften over the past year. At today's price levels, it is virtually impossible to maintain viable operations given the current cost structure of the Chetwynd mill," said Chris Black, Tembec Executive Vice President and President of the Paper and Paper Pulp Group.

"This is a difficult decision that we have not taken lightly since it has an impact on employees and on the region. We will continue to monitor the market and, in due course, reassess the situation accordingly," he added.

High-yield pulp, also known as bleached chemi-thermo-mechanical pulp (BCTMP), is used in printing and writing papers, paperboard as well as tissue and towelling.

Pulp produced at the Chetwynd mill is shipped to primarily Asia, Tembec said.

The Chetwynd mill, which was built in 1990, has an annual production capacity of 240,000 tonnes.

Tembec purchased the mill in 2002.

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 4,000 employees and annual sales of approximately $2 billion.

SOURCE: Tembec Inc.