Tembec idles machine, lays off 40 employees
April 23, 2008 By Pulp & Paper Canada
Tembec is idling PM3 at its newsprint mill in Kapuskasing, ON mill for an indefinite period of time. This comes six…
Tembec is idling PM3 at its newsprint mill in Kapuskasing, ON mill for an indefinite period of time. This comes six months after an initial idling of the machine in October of 2007.
The machine has an annual capacity of 100,000 tonnes.
Tembec is also undertaking an internal reorganization, which will see 40 unionized and staff employees laid off.
The extended idling of paper machine #3 is driven by a shortage of economic fibre supply, noted Chris Black, senior vice president of the company’s newsprint division.
The low operating rates of regional sawmills in Northern Ontario, stemming from the dramatic decline in the level of U.S. housing starts, continues to restrict the availability of fibre. Over the long term, the issue will be the availability of economic fibre, the overall cost competitiveness of the site and the dynamics of the North American newsprint market, he added.
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