Tembec takes market-related downtime after sudden and drastic drop in global pulp demand

    TEMISCAMING, QC, Jan. 26 /CNW Telbec/ - Tembec today announced a series
of market-related shutdowns affecting one of its Canadian pulp mills, as well
as the Company's three pulp mills in France. The shutdowns, ranging from two
weeks to an indefinite idling, are a direct response to the global economic
slowdown and the related impact on packaging and other pulp-consuming
    In Canada, the high yield pulp mill located in Matane, Quebec which was
expected to restart on January 31 will remain idled indefinitely. This
extended shutdown will affect approximately 120 people.
    In France, the paper pulp mills in Tarascon and Saint-Gaudens will each
take four-week shutdowns starting February 8, and the specialty pulp mill in
Tartas will begin a two-week shut on February 15. The Saint-Gaudens and
Tarascon mills together employ roughly 550 people, and the Tartas mill,
approximately 300.
    Unlike earlier temporary shutdowns, these will affect both staff and
hourly personnel. Employees at all affected sites have been informed of the
Company's decision.
    "The aggressive actions announced today follow a review of current and
foreseen market conditions. We have made the decision to respond in a manner
that represents the best approach to minimizing losses, managing cash and
reducing 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 hardwood high yield pulp mill in Matane produces 250,000 tonnes
annually. The Tarascon softwood Kraft mill and the Saint-Gaudens hardwood
Kraft mill produce respectively 260,000 and 305,000 tonnes of pulp per year,
and the Tartas speciality cellulose mill has an annual capacity of 155,000

    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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