Montreal based pulp mill up for sale

MONTREAL (Scrap Monster) : The Montreal based Forestry Company, Tembec Inc. has decided to go ahead with its plans to sell of its Skookumchuck pulp mill. The company had reported its fourth quarter earnings for 2012 wherein it reported a net loss of $10 million. The numbers have improved significantly, considering the fact that the company had posted a net loss of $16 million in same period of 2011.

The US Housing Market recovery has boosted the sales and operations of most of the forestry companies in the British Columbia. In spite of the positive business sentiment, Tembec’s profits plunged for its paper, pulp and lumber divisions.

Its paper segment earned $6 million on $78 million of sales, also a decrease from the prior quarter on lower coated bleached board and newsprint shipments.

The lumber segment made $2 million on $101 million of sales. The sales dropped by $7 million.

The paper pulp segment generated no adjusted earnings on $117 million of sales.

Tembec’s specialty cellulose pulp segment generated $18 million of income on $103 million of sales.

Tembec Inc plans to sell its Skookumchuck pulp unit which employs around 280 workers. The deal would fetch approximately $135 million to Tembec, which would aid the capital expenditure spending in Temiscaming, Que.