Tembec takes further sawmill downtime in response to weak market conditions

    TEMISCAMING, QC, June 12 /CNW Telbec/ - Tembec today announced a series
of market related temporary shutdowns affecting all its sawmills in Northern
    The affected operations include the Kapuskasing sawmill which will shut
down for a period of one week beginning July 6, the Chapleau sawmill for three
weeks beginning June 29, and the Cochrane and Hearst sawmills which will each
go down for six weeks beginning June 22 and July 6 respectively. These idlings
will affect employees at all levels at the sawmills, as well as the forestry
operations supporting these facilities. Approximately 500 employees will be
impacted by these combined temporary shutdowns.
    "These shutdowns are a consequence to the rapid and significant
appreciation in the value of Canadian dollar, continued weak markets for
lumber, and the related need to manage inventories and working capital," said
Dennis Rounsville, Executive Vice President and President of Tembec's Forest
Products Group. "We will continue to monitor economic and market conditions
closely and will manage operating rates accordingly."
    Employees at the affected Ontario sites have been advised of the
Company's decision.
    The Company also confirmed that employees at its sawmills in Elko and
Canal Flats, British Columbia were advised that those sites would be idled
effective June 15 for a minimum of three weeks for similar reasons.
    The affected Northern Ontario sawmills have a total annual capacity of
550 million board feet and the B.C. mills a combined annual capacity of 450
million board feet.

    Tembec is a large, diversified and integrated forest products company
which stands as the global leader in sustainable forest management practices.
The Company's principal operations are located in Canada and France. 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 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 "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: Tracy Dottori, Human Resources Manager, Forest
Products Group, (819) 627-4591, tracy.dottori@tembec.com

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