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Tembec curtails production at two Ontario sites


October 16, 2007
By Pulp & Paper Canada

Temiscaming, QC — Tembec has announced an indefinite idling of PM3 at its Kapuskasing newsprint mill, effective Oc…

Temiscaming, QC — Tembec has announced an indefinite idling of PM3 at its Kapuskasing newsprint mill, effective October 23, 2007. The company has also announced an indefinite shutdown of its Cochrane sawmill, starting October 19, 2007.

Chris Black, Tembec’s senior VP, Newsprint Division, explains the Kapuskasing idling: “The indefinite idling of PM3 is necessary due to a combination of poor newsprint market conditions and a wood chip shortage that has occurred largely as a result of the numerous sawmill curtailments in Northern Ontario. The company has reviewed alternate source of fibre supply however, all options were detrimental to the mill’s financial performance.” PM3 has an annual capacity of 100,000 tonnes. The idling will affect 50 employees at the location.

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Dennis Rounsville, Tembec’s executive VP and president of the Forest Products Group, discusses the Cochrane shutdown: “The indefinite shutdown at the Cochrane sawmill is being taken due to a combination of factors. These include poor demand for lumber, declining product pricing and the continued impact of the high value of the Canadian dollar.” The sawmill has an annual production capacity of 150 Mfbm of SPF lumber and has about 150 employees.


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