TEMISCAMING, QC, Feb. 13 /CNW Telbec/ - Tembec today announced a series
of initiatives aimed at cost reduction during a period of significant economic
decline that has affected virtually every sector and every region of the
world. The actions announced specifically focused on reducing overhead costs
(SG&A), and include:
- a reduction of approximately 100 staff positions, being achieved
through a combination of terminations, layoffs and retirements
- a salary freeze for 2009 affecting management and staff personnel
- a reduction in travel and related expenses
- a review of the Company's participation in all associations and
"The actions announced today are extraordinary measures for our Company.
However, these are extraordinary times for the economy generally, and for
forest products in particular," said Jim Lopez, President & CEO. "The
recapitalization of our Company completed a year ago gave us a strong balance
sheet and liquidity. We intend to take the steps necessary to preserve that
position, and to allow Tembec to weather this economic storm. We regret the
impact of these actions on affected employees and their families."
These initiatives follow earlier temporary shutdowns of facilities in
four Canadian provinces and in France that were taken in response to depressed
market conditions for lumber, pulp and newsprint. At the time these shutdowns
were announced, the Company indicated it had taken the extraordinary measure
of laying off staff as well as hourly personnel.
The Company has also undertaken a supplier cost reduction initiative
aimed at targetting a 10% reduction from material suppliers and a 20%
reduction from service suppliers. "We are extremely pleased with the response
from the vast majority of our suppliers. They are aware of the challenges the
current economic situation is imposing on all of us, and have responded
accordingly," said Mr. Lopez.
The Company also announced the permanent closure of its hardwood sawmill
located in Mattawa, Ontario. The sawmill, which has been idled since July,
2008, had employed 59 people. The closing reflects the poor market conditions
and the financial performance of the mill.
Tembec is a large, diversified and integrated forest products company
which stands as the global leader in sustainable forest management practices.
With operations principally located in North America and in France, the
Company employs approximately 7,000 people. 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
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
For further information:
For further information: John Valley, Executive Vice President, Business
Development and Corporate Affairs, (416) 775-2819, email@example.com