Tembec has announced the permanent closure of its newsprint mill located in Pine Falls, Manitoba. The mill had…
Tembec has announced the permanent closure of its newsprint mill located in Pine Falls, Manitoba. The mill had been indefinitely idled due to a labour dispute on September 1, 2009. The company initiated a sales process for the mill in January 2010, which ultimately proved unsuccessful. An employee-led buyout group recently withdrew from the process.
Tembec has concluded that the permanent closure of the facility is the only viable option. 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.
As a result of this announcement, a net charge of approximately $8 million related to the closure will be recorded in the quarter ending September 25, 2010.
Tembec is a large, diversified and integrated forest products company with operations in Canada and France.
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