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Press release from CNW Group

Tembec officially inaugurates new bark boiler at its Béarn sawmill in Quebec

Friday, June 22, 2012

Tembec officially inaugurates new bark boiler at its Béarn sawmill in Quebec15:49 EDT Friday, June 22, 2012MONTREAL, June 22, 2012 /CNW Telbec/ - Tembec officially inaugurated a new bark boiler today at its Béarn sawmill in the Abitibi-Témiscamingue region of Quebec. This new boiler represents a $6 million investment announced by the Company last July. Construction began in the fall of 2011 and was completed on schedule in the spring of 2012. "The quality of the work is proof of the dedication of all who contributed to the execution of this project. Their efforts allowed us to achieve this without any accidents, within budget and on schedule," stated Michel Bastien, Tembec Vice President, SPF, Quebec Division.This investment will reduce energy costs by replacing two existing oil-fired 6000-kW boilers with a single bark-fired boiler. The new boiler's capacity of 7000-kW will provide heating for the sawmill buildings as well as the required energy to operate the sawmill's two kilns. "Thanks to this initiative, our facilities will be significantly more competitive, more efficient and more environmentally friendly. Not only will we operate a more efficient sawmill, but we will also enhance the quality of the environment as well as supply a portion of the energy needs of our specialty cellulose plant in Témiscaming," underlined Michel Bastien, Tembec Vice President, SPF, Quebec Division, Tembec Forest Products Group. Eliminating the annual consumption of 2.8 million litres of fuel will reduce greenhouse gas emissions (GHG) by 88% at the site.Tembec's sawmill in Béarn employs 135 people and ships its lumber within Canada and to the United States, mainly to the Province of Quebec, Ontario and the Great Lakes area. It also provides wood chips as raw material and biomass as a source of energy to the Tembec specialty cellulose plant in Témiscaming. The long-term viability of the Témiscaming cellulose plant is tied partly to the sawmill in Béarn. Because this mill produces quality wood chips and quality biomass, and because it operates nearby, it qualifies as a supplier of choice for the cellulose plant. The Béarn mill therefore enables the Témiscaming plant to reduce transportation costs for these supplies.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.About the Heavy Oil Consumption Reduction ProgramThis program, administered by the "Agence de l'efficacité énergétique du Québec", helps heavy oil consumers move toward sustainable development while improving their competitive position by reducing their consumption. Financial assistance is offered to carry out various analyses as well as implement energy efficient measures relating to heavy fuel oil or to switch to other forms of energy containing fewer pollutants, such as natural gas, forest biomass and electricity. This program is financed by the Green Fund and falls under Action 1 of the 2006-2012 Climate Change Action Plan. Any company with a place of business in the Province of Quebec where heavy oil is consumed and which meets the requirements of the program is eligible.For further information: Linda Coates Vice President, Communications and Public Affairs  Tel.: 514 871-9425 linda.coates@tembec.com