Tembec curtails production at two of its Ontario sites

    TEMISCAMING, QC Oct. 12 /CNW Telbec/ - Tembec today announced an
indefinite idling of paper machine #3 ("PM 3") at its Kapuskasing, Ontario
newsprint mill, effective Tuesday, October 23, 2007. In a separate decision,
the Company also announced the indefinite shutdown of its sawmill located in
Cochrane, Ontario, commencing October 19, 2007.
    "The indefinite idling of PM 3 is necessary due to a combination of poor
newsprint market conditions and a wood chip shortage that has occurred largely
as a result of the numerous sawmill curtailments in Northern Ontario," said
Chris Black, Senior Vice President, Newsprint Division. "The Company has
reviewed alternate sources of fibre supply however, all options were
detrimental to the mill's financial performance."
    Paper machine #3 at the newsprint mill in Kapuskasing has an annual
capacity of 100,000 tonnes. The idling will impact approximately 50 employees
across the site.
    "The indefinite shutdown at the Cochrane sawmill is being taken due to a
combination of factors," said Dennis Rounsville, Executive Vice President and
President of Tembec's Forest Products Group. "These include poor demand for
lumber, declining product pricing and the continued impact of the high value
of the Canadian dollar."
    The Cochrane sawmill has an annual production capacity of 150 Mfbm of SPF
lumber and employs approximately 150 people.
    Management has already met with employees to inform them of the Company's

    Tembec is a large, diversified and integrated forest products company.
With operations principally located in North America and in France, the
Company employs approximately 9,000 people. Tembec's common shares are listed
on the Toronto Stock Exchange under the symbol TBC. 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 "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 in Canada and the United States. 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: John Valley, Executive Vice President, Business
Development and Corporate Affairs, (416) 775-2819, Cell: (289) 259-5699; Tracy
Dottori, Corporate Manager, Organizational Development, (819) 627-4591, Cell:
(705) 358-0714

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890