Montreal-based Tembec Inc. will be shutting its Kapuskasing, Ont. operations beginning April 9 for a minimum of fou…
Montreal-based Tembec Inc. will be shutting its Kapuskasing, Ont. operations beginning April 9 for a minimum of four weeks due to the challenging market conditions for both newsprint and lumber.
The move will take 20,000 tonnes of newsprint and 8 million board feet of construction lumber off the market
The shut will affect about 510 employees from all levels of the Kapuskasing sawmill, newsprint and forestry operations.
“The newsprint operations at Kapuskasing have made significant progress in terms of improved productivity. These efforts by our employees, combined with positive actions taken by the Province of Ontario to reduce the effective price of electricity, have helped to improve the cost position of the newsprint mill significantly. Such positive actions have been and will continue to be integral to the competitive position of this site. However, the current and foreseen market conditions are such that this curtailment is unavoidable,” said Terry Skiffington, Tembec’s vice president, newsprint operations, Paper Group.
The Kapuskasing shut adds to cuts Tembec announced last month, which include cutting jobs, idling operations, and freezing salaries.
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