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Tembec and Howe Sound curtail newsprint production


June 23, 2009
By Pulp & Paper Canada

Tembec has temporarily curtailed operations at its Pine Falls, Man., newsprint facility, for a minimum of three wee…

Tembec has temporarily curtailed operations at its Pine Falls, Man., newsprint facility, for a minimum of three weeks, commencing June 16. The company states that the shutdown is directly related to the ongoing challenging market conditions for newsprint. It will affect approximately 300 employees at all levels of the organization from the newsprint and forestry operations.

Similarly, Howe Sound Pulp and Paper Limited Partnership (HSPP) announced today that due to continued poor newsprint demand and unsustainably low pricing levels, it will indefinitely curtail one-third of its newsprint production.

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The company states that unsustainable low pricing in certain regions of the U.S. is a direct result of the black liquor tax credit available to U.S. mills.

The production curtailments will be accomplished through a combination of paper machine shut downs and reduced operating rates.

HSPP operates a kraft pulp and newsprint mill at Port Mellon, B.C., with an annual production capacity of 400,000 tonnes of pulp and 230,000 tonnes of newsprint.

Chris Black, Tembec’s executive vice-president and president, paper group, says, “Market and operating conditions remain challenging for North American newsprint producers, driven by the significant decline in demand for newsprint and the related need to manage inventory levels and working capital. As a result, this curtailment is unavoidable.”

The curtailment at the Pine Falls mill is expected to result in lost production of 11,000 tonnes of newsprint. Tembec indicated it will continue to monitor market conditions closely and will adjust operating rates accordingly.


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