The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Tembec announces the permanent closure of its Taschereau sawmill

Monday, February 21, 2011

Tembec announces the permanent closure of its Taschereau sawmill09:27 EST Monday, February 21, 2011TEMISCAMING, QC, Feb. 21 /CNW Telbec/ - Tembec announced today the permanent closure of its Taschereau sawmill. The facility has been idle since October 2009. The closure is necessitated by the reality that there is insufficient sustainable timber supply to operate all of Tembec's sawmills in the Abitibi-Témiscamingue region."The closure we are announcing today is necessary to insure the long term viability of the Bearn and La Sarre sawmills," stated Dennis Rounsville, Executive Vice President and President of the Tembec Forest Products Group. "Sawmills must have the necessary fibre supply to facilitate cost effective operations and justify the capital investments required to survive in an increasingly competitive market," he said.Tembec has presented a plan to the Province of Quebec for a new approach to the distribution of timber volumes that will enable the Company to strengthen its operations in the Abitibi-Témiscamingue region and provide more stable and continuous employment.Tembec will work with the affected employees to minimize the impact of the closure, including potential transfers to other Tembec operations. A community adjustment fund will be established with the Municipality of Taschereau. As a result of the Taschereau closure, Tembec will record a non-recurring charge of $2 million in the March 2011 quarter.Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.This press release includes "forward-looking statements" within the meaning of securities laws.  Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variation thereof, and expressions of similar nature.  Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.For further information: Tracy Dottori Manager, Human Resources, Forest Products Group Tel: (819) 627-4591 tracy.dottori@tembec.com