Tembec B.C. pulp mill to be idled - U.S. black liquor tax credit a factor



    TEMISCAMING, QC, June 11 /CNW Telbec/ - Tembec today announced that its
pulp mill located in Skookumchuck, British Columbia will take at least two
weeks of market related downtime beginning the week of June 29.
    Tembec attributed this action to a range of considerations including the
ongoing challenging market conditions for pulp and pulp consuming products,
the rapid and significant strengthening of the Canadian dollar and the lack of
economically viable fibre. The Company also indicated that the black liquor
tax credit available to U.S. chemical pulp producers has added to these other
issues and was a determining factor in this decision.
    "The black liquor tax credit available to U.S. producers was absolutely a
factor in this decision. It has allowed chemical pulp capacity that would
otherwise be uneconomic to either remain in operation or be brought back into
production, resulting in a material distortion in the pulp market in terms of
both the supply/demand balance and pricing," said James Lopez, Tembec's
President and Chief Executive Officer. "In the absence of an offsetting
measure to allow Canadian producers to level the playing field, our industry
and its employees will continue to pay the price through mill idlings and
closures. This inequity must be addressed."

    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.




For further information:

For further information: Tracy Dottori, Human Resources Manager, Forest
Products Group, (819) 627-4591, tracy.dottori@tembec.com


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