News
Buyout plan for Pine Falls abandoned, Tembec declares closure permanent

MONTREAL — The employee group considering the purchase of the shuttered Pine Falls newsprint mill has told the mill’s owner, Tembec, that the deal is off. The group concluded it could not make a viab…

MONTREAL — The employee group considering the purchase of the shuttered Pine Falls newsprint mill has told the mill’s owner, Tembec, that the deal is off. The group concluded it could not make a viable business case for the purchase. Consequently, Tembec has announced the permanent closure of the newsprint mill located in Pine Falls, Man. The mill had been indefinitely idled due to a labour dispute on September 1, 2009. Approximately 230 employees will be affected.

“Although not an easy decision to make, the structural decline of the newsprint market and the cost structure of the mill prompted such a decision,” said Chris Black, Tembec’s executive vice-president and president, Paper Group.

Black says Tembec will ensure that employees receive their severance pay in accordance with the collective agreement.