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Tembec curtails pulp production in Canada amidst global weakening of demand
07/10/2008 - 11:17
Tembec October 6, 2008 announced coordinated production curtailments of 35,000 tonnes from its three high-yield pulp mills in order to balance inventory levels.

The Company’s Temcell mill located in Temiscaming, Quebec will curtail production of 16,500 tonnes between October 11 and November 9. The Chetwynd, British Columbia operation will shut down on October 19 and resume operations on October 27, resulting in a reduction of output of 4,000 tonnes. The Matane, Quebec mill will cease operations from October 19 to November 1st and from November 23 to November 29, taking 14,500 tonnes off the market.

“Lower demand for pulp in Asia is the primary reason for the production curtailments. The shutdowns announced today will allow Tembec to manage inventories and working capital to the appropriate levels. The Company will also take advantage of this downtime to do some maintenance work,” said Yvon Pelletier, Executive Vice President and President of the Pulp Group.

Management has informed employees at affected sites of the Company’s decision.

The Temcell operation produces 300,000 tonnes of hardwood high-yield pulp annually. Annual production at Chetwynd is 230,000 tonnes, and 250,000 tonnes at Matane.
(Tembec)
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