Pilot plant construction announced; initiative builds on Tembec competencies in specialty pulp and chemical businesses

TEMISCAMING, QC, April 11 /CNW Telbec/ - Tembec (TSX:TMB) today announced that it will proceed with the construction of a pilot plant for the development of a high performance structural product known as Next Generation Sustainable Fibre ("Next Gen"). This project is based on an innovative, Tembec patented process that will use Tembec's Forest Stewardship Council ("FSC") certified pulp and FSC certified lignosulfonates within a modified phenolic resin to produce a structural material with unique strength-to-weight and durability characteristics.

"The Next Generation Sustainable Fibre initiative recognizes the growing demand for environmentally friendly, lightweight structural composites suitable for applications in such areas as infrastructure and engineered components," said Randy Fournier, Senior Vice President, Chemical Products and Kraft Pulp. "Our initial end-use application will be a railway tie for environmentally sensitive areas, with other applications such as automotive components, land and marine transportation infrastructure, and electrical energy generation and transmission infrastructures to be assessed."

The cost of the pilot plant is estimated at approximately $ 8.4 million, with the majority of the funding being provided equally by the Quebec and Federal Governments. Support from the Province of Quebec in the amount of $ 3.45 million will come from the Ministère des Ressources naturelles et de la Faune, through FPInnovations,  and the Ministère du Développement économique, de l'Innovation et de l'Exportation. Federal funds of $ 3.45 million will come from Natural Resources Canada/FPInnovations, through the Federal Transformative Technologies Pilot Scale Demonstration Program.

"Tembec is among the world's leaders in Specialty Pulp, and Next Generation Sustainable Fibre is a natural extension of the Company's product and technology development. Applications such as "Next Gen" offer the potential to continue the Company's focus on higher margins in less volatile businesses," said James Lopez, President and CEO of Tembec. "The project announced today, with timely and active support from the Quebec and Federal Governments, will allow this opportunity to be fully developed. It fits with the Company's strategy of building on core competencies such as our specialty pulp and chemical knowledge."

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, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variation thereof, and expressions of similar nature. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it 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 forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.

SOURCE TEMBEC

For further information:

Michel J. Dumas
Executive Vice President, Finance and Chief Financial Officer
Tel.: 819 627-4268
michel.dumas@tembec.com

Tracy Dottori
Manager, Human Resources, Forest Products Group
Tel.: 819 627-4591
tracy.dottori@tembec.com

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