TEMISCAMING, QC, Jan. 14 /CNW Telbec/ - Tembec today announced a reduction of production, via a reduced work week, both at its Elko sawmill and corresponding planer mill commencing the week of January 14, 2008 as well as at its Canal Flats sawmill and corresponding planer mill starting the week of January 21, 2008. Over the next three months Tembec will take the equivalent of three weeks of production downtime, through reduced shifts at the mills. Tembec is working with Human Resources and Social Development Canada (HRSDC) to implement a Work Sharing Program to reduce the impact on its affected employees during this period. Production requirements will be re-evaluated following the initial three-month period.
These curtailments will reduce production by approximately 24,000 mbf totalling an annualized reduction of 124,000 mbf since July 2007. The Canal Flats and Elko sawmills and planer mills have a combined annual production capacity of 420,000 mbf of SPF lumber and employ approximately 480 people.
"These curtailments are being taken due to the sharp decline in demand for lumber given poor housing market conditions in the United States, low lumber prices and the impact of the high valued Canadian dollar relative to the US currency," said Dennis Rounsville, Executive Vice President and President of Tembec's Forest Products Group. "We are doing all we can in order to minimize the impact of this decision on our employees and the affected communities," concluded Mr. Rounsville.
Management has informed employees of all affected sites of the Company's decision.
Tembec is a large, diversified and integrated forest products company. With operations principally located in North America and in France, the Company employs approximately 8,000 people. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TBC. 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 "anticipate", "estimate", "expect", "will" 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 in Canada and the United States. 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.