Tembec takes downtime to adjust to market conditions

    TEMISCAMING, QC, Feb. 3 /CNW Telbec/ - Tembec today announced a series of
market-related shutdowns affecting all of its British Columbia facilities, its
newsprint mill in Manitoba and one additional sawmill in Ontario.
    In British Columbia, the Canal Flats and Elko sawmills, as well as the
Cranbrook finger joint facility, will shut down for approximately eight weeks
starting February 9, 2009. The softwood Kraft pulp mill located in
Skookumchuck will cease operating on February 23 for a six-week period. The
high yield pulp mill in Chetwynd was idled on Monday, February 2 and will
remain down until market conditions support a resumption of operations. The
combined BC curtailments will affect approximately 975 employees. The
newsprint mill in Pine Falls, Manitoba will shut down for two weeks, effective
February 10, affecting approximately 300 employees. The Company's Hearst,
Ontario sawmill, which employs roughly 125 employees, will shut down for a
six-week period beginning on February 9.
    These shutdowns are in response to depressed markets for lumber, pulp and
newsprint. Lumber markets and prices continue to be negatively affected by the
ongoing housing downturn in the United States. Pulp markets have been impacted
by the global economic slowdown and the related impact on packaging and other
pulp consuming products. The North American newsprint market continues to
experience a structural decline, compounded by the impact of the current
recession on newspaper advertising.
    These outages will affect both staff and hourly personnel. Employees at
all affected sites have been informed of the Company's decision. The Company
also indicated it will be reviewing fibre supply and procurement needs as a
result of these shutdowns, and will respond accordingly.
    "The extensive idlings announced today follow a careful review of current
and forecasted market conditions. As difficult as these decisions may be for
employees, contractors and communities, they are necessary to minimize losses,
manage cash and reduce inventories," said Jim Lopez, President and Chief
Executive Officer. "We will obviously continue to monitor market conditions
closely and will manage operating rates accordingly."
    The Canal Flats and Elko sawmills have annual capacities of 180,000 mbf
and 270,000 mbf respectively, while the Cranbrook facility produces 25,000 mbf
of finger jointed lumber per year. The Hearst sawmill has an annual capacity
of 160,000 mbf. The Skookumchuck Kraft mill produces 270,000 tonnes of
softwood pulp per year, and the high yield pulp mill in Chetwynd has an annual
capacity of 240,000 tonnes of hardwood pulp. The Pine Falls newsprint facility
produces 185,000 tonnes annually.

    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 7,000 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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