TEMISCAMING, QC, Feb. 21 /CNW Telbec/ - Tembec announced today the
permanent closure of its Taschereau sawmill. The facility has been idle
since October 2009. The closure is necessitated by the reality that
there is insufficient sustainable timber supply to operate all of
Tembec's sawmills in the Abitibi-Témiscamingue region.
"The closure we are announcing today is necessary to insure the long
term viability of the Bearn and La Sarre sawmills," stated Dennis
Rounsville, Executive Vice President and President of the Tembec Forest
Products Group. "Sawmills must have the necessary fibre supply to
facilitate cost effective operations and justify the capital
investments required to survive in an increasingly competitive market,"
Tembec has presented a plan to the Province of Quebec for a new approach
to the distribution of timber volumes that will enable the Company to
strengthen its operations in the Abitibi-Témiscamingue region and
provide more stable and continuous employment.
Tembec will work with the affected employees to minimize the impact of
the closure, including potential transfers to other Tembec operations.
A community adjustment fund will be established with the Municipality
As a result of the Taschereau closure, Tembec will record a
non-recurring charge of $2 million in the March 2011 quarter.
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
For further information:
Manager, Human Resources, Forest Products Group
Tel: (819) 627-4591