Tembec curtails lumber production in response to weak markets

    TEMISCAMING, QC, Sept. 25 /CNW Telbec/ - Tembec today announced a series
of curtailments of sawmill production in the midst of softening demand and
prices for lumber. Specifically, the Company will shut down its British
Columbia Elko and Canal Flats sawmill and planer plants for two weeks, one in
early October and another in early November. These shutdowns will also force a
reduction in production at the Company's finger joint facility in Cranbrook,
B.C. for four weeks, two in October and another two in November. Finally, the
Cochrane, Ontario, mill will cease operation at the end of October and will
remain idled for a period of five months.
    "These shutdowns are a consequence of the prolonged downturn in the US
housing market and the directly related impact on the demand and price for
lumber," said Dennis Rounsville, Executive Vice President and President of
Tembec's Forest Products Group. "With these market conditions expected to
continue for the next several quarters, we need to act responsibly and adjust
our production levels to current and foreseen market demand for lumber."
    The Elko, Canal Flats and Cranbrook mills, with an annual capacity of
475 million board feet (mmbf) employ roughly 350 people. Cochrane on the other
hand produces 170 mmbf and employs 200 people.
    "Through the curtailments, Tembec intends to maintain its FSC-certified
lumber deliveries to support our customers in meeting market and public demand
for environmentally friendly solutions. With 10.4 million hectares of Forest
Stewardship Council (FSC)-certified forestland under management, Tembec offers
the largest range of FSC-certified products in the marketplace," concluded
Mr. Rounsville.
    Management has informed employees at designated sites of the Company's
    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 8,000 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: Richard Fahey, Vice President, Communications
and Public Affairs, (514) 871-2304, richard.fahey@tembec.com

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