Tembec curtails pulp production amidst global weakening of demand

Tembec has announced limited production curtailments at two of its pulp mills in order to balance inventory levels. The company’s Temcell hardwood high-yield pulp mill located in Temiscaming, Quebec stopped production on August 31 for one week, while its softwood kraft pulp mill located in Tarascon, France will be idled for two weeks commencing September 10. These curtailments combined will reduce output by 16,500 t.
“The late summer period typically represents a period of lower demand for pulp. We are seeing this occurring in Europe and areas of Asia, driven in part by annual vacation shutdowns in pulp consuming businesses. Further, we are experiencing lower demand from our customers. The shutdowns announced today will allow Tembec to prudently manage both inventory levels and working capital,” said Yvon Pelletier, Executive Vice President and President of the Pulp Group. Management has informed employees at both sites of the Company’s decision.

The Temcell operation produces 300,000 t/y of hardwood high-yield pulp and Tarascon’s yearly production amounts to 260,000 t of softwood kraft pulp.