Tembec curtails pulp production in Canada amidst global weakening of demand

    TEMISCAMING, QC, Oct. 6 /CNW Telbec/ - Tembec today announced coordinated
production curtailments of 35,000 tonnes from its three high-yield pulp mills
in order to balance inventory levels.
    The Company's Temcell mill located in Temiscaming, Quebec will curtail
production of 16,500 tonnes between October 11 and November 9. The Chetwynd,
British Columbia operation will shut down on October 19 and resume operations
on October 27, resulting in a reduction of output of 4,000 tonnes. The Matane,
Quebec mill will cease operations from October 19 to November 1st and from
November 23 to November 29, taking 14,500 tonnes off the market.
    "Lower demand for pulp in Asia is the primary reason for the production
curtailments. The shutdowns announced today will allow Tembec to manage
inventories and working capital to the appropriate levels. The Company will
also take advantage of this downtime to do some maintenance work," said Yvon
Pelletier, Executive Vice President and President of the Pulp Group.
    Management has informed employees at affected sites of the Company's
    The Temcell operation produces 300,000 tonnes of hardwood high-yield pulp
annually. Annual production at Chetwynd is 230,000 tonnes, and 250,000 tonnes
at Matane.

    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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