Tembec curtails pulp production amidst globally weakening of demand

    TEMISCAMING, QC, Sept. 2 /CNW Telbec/ - Tembec today announced limited
production curtailments at two of its pulp mills in order to balance inventory
levels. The Company's Temcell hardwood high-yield pulp mill located in
Temiscaming, Quebec stopped production on August 31 for one week, while its
softwood kraft pulp mill located in Tarascon, France will be idled for two
weeks commencing September 10. These curtailments combines will reduce output
by 16,500 tonnes.
    "The late summer period typically represents a period of lower demand for
pulp. We are seeing this occurring in Europe and areas of Asia, driven in part
by annual vacation shutdowns in pulp consuming businesses. Further, we are
experiencing lower demand from our customers. The shutdowns announced today
will allow Tembec to prudently manage both inventory levels and working
capital," said Yvon Pelletier, Executive Vice President and President of the
Pulp Group.
    Management has informed employees at both sites of the Company's
    The Temcell operation produces 300,000 tonnes of hardwood high-yield pulp
annually and Tarascon's yearly production amounts to 260,000 tonnes of
softwood kraft pulp.

    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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