Pulp and Paper Canada

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Sawmills


June 1, 2003
By Pulp & Paper Canada

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Tembec suspends activities at three sawmillsTEMISCAMING, QC — Tembec announced that it has shut down three of its sawmills for five weeks. The Barn, Cochrane and Canal Flats mills — located in Queb…

Tembec suspends activities at three sawmills

TEMISCAMING, QC — Tembec announced that it has shut down three of its sawmills for five weeks. The Barn, Cochrane and Canal Flats mills — located in Quebec, Ontario and British Columbia, respectively — have been hard hit by the unwarranted and illegal countervailing duties and anti-dumping penalty imposed on softwood lumber by the US. The recent strength of the Canadian dollar has aggravated the situation. Activities have also been suspended at the Kirkland Lake, Ontario, sawmill since November 2002 for the same reasons.

During meetings held at each of the three mills, employees and union representatives were informed of the Company’s decision and discussed the situation with management.

The Barn, Cochrane and Canal Flats mills combined produce some 30% of Tembec’s total SPF lumber output, and their temporary shutdown will affect over 490 direct jobs. Management believes that this curtailment will not negatively affect the Company’s financial performance.#text2#