TEMISCAMING, QC, June 12 /CNW Telbec/ - Tembec today announced a series of market related temporary shutdowns affecting all its sawmills in Northern Ontario.
The affected operations include the Kapuskasing sawmill which will shut down for a period of one week beginning July 6, the Chapleau sawmill for three weeks beginning June 29, and the Cochrane and Hearst sawmills which will each go down for six weeks beginning June 22 and July 6 respectively. These idlings will affect employees at all levels at the sawmills, as well as the forestry operations supporting these facilities. Approximately 500 employees will be impacted by these combined temporary shutdowns.
"These shutdowns are a consequence to the rapid and significant appreciation in the value of Canadian dollar, continued weak markets for lumber, and the related need to manage inventories and working capital," said Dennis Rounsville, Executive Vice President and President of Tembec's Forest Products Group. "We will continue to monitor economic and market conditions closely and will manage operating rates accordingly."
Employees at the affected Ontario sites have been advised of the Company's decision.
The Company also confirmed that employees at its sawmills in Elko and Canal Flats, British Columbia were advised that those sites would be idled effective June 15 for a minimum of three weeks for similar reasons.
The affected Northern Ontario sawmills have a total annual capacity of 550 million board feet and the B.C. mills a combined annual capacity of 450 million board feet.
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 to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "will", "anticipate", "estimate", "expect" and "project" or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience 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 Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.