Tembec restructures sawmills
April 18, 2005 By Pulp & Paper Canada
Tembec is gearing up to implement major restructuring at its Abitibi-Temiscaming, QC sawmills. Citing a strong Cana…
Tembec is gearing up to implement major restructuring at its Abitibi-Temiscaming, QC sawmills. Citing a strong Canadian dollar, fierce marketplace competition, the perpetual Canada-U.S. softwood lumber dispute and curtailed access to fibre supply as reasons for the decision, Tembec will close its sawmill in La Sarre on May 13th, at which point 150 people will be put out of work. The company’s sawmill in Taschereau will carry out the majority of its production with a single production line, but will do so using three shifts instead of two. The Senneterre facility, as well as the other Tembec-owned sawmill in Ls Sarre will continue to operate with three shifts, while the Barn sawmill will use two.
The plan will also see changes made to the public forest timber supply used by Tembec’s five sawmills, decreasing the allotted amount from 2.1 million to 1.7 million m3.
Because the mill scheduled to close in La Sarre was only recently acquired, Tembec will record an unusual charge of $14.6 million relating to the reduction of the carrying value of the facility. Other closure costs totaling $5.3 million will also be recorded, while the after-tax effect of $13.1 million will be recorded in the June 2005 quarter.
Overall the company anticipates the effects of the closures and restructuring will be minimal, and has confirmed there will be job opportunities in its other regional operations, including the new LVL plant in Amos.
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