Troubled Tembec shuts down major sawmill temporarily

Tembec is imposing a temporary shutdown for a period of at least three months at its Béarn sawmill located in Quebec, Canada, effective March 31, 2008. The shutdown decision was based on the lack of reasonably priced logs in the region and the overall depressed lumber market. “This shutdown is a reflection of the severe decline in overall market conditions, driven primarily by the dramatic fall in the number of housing starts in the United States and the related impact on lumber pricing. The continued high value of the C$ against the US$ further aggravates these conditions,” said Dennis Rounsville, Executive VP and President of Tembec’s Forest Products Group.
The Béarn sawmill has an annual production capacity of 110,000 Mfbm of SPF lumber and employs approximately 150 people. Management has already met with employees to inform them of the decision.

Tembec is a large, diversified and integrated forest products company, and a global leader in sustainable forest management practices. With operations principally located in North America and in France, the company employs approximately 8,000 people.