Tembec to indefinitely suspend Quebec saw mill operations

MONTREAL (Scrap Monster): Tembec has announced indefinite suspension of operations at its Senneterre, Quebec sawmill. The company has cited prolonged weakness in the North American softwood lumber market and extremely high wood costs as the key reasons for idling the operations at the sawmill located in Temiscaming region, northwestern Quebec. The decision is expected to affect nearly 148 mill employees. The suspension of operations is scheduled to commence next Monday.

According to James Lopez, CEO, Tembec, the decision was necessary to minimize company’s losses. The company, which had reported strong overall performance during first quarter of current fiscal, had reported adjusted EBITDA loss in its lumber operations.

Lopez also stated that the company will carefully analyze the changes in market conditions and may take suitable decision at appropriate time with regards to restarting mill operations. Moreover, it plans to work in hand with the Quebec authorities to find permanent solution to spiraling fibre costs. The operations at the other two Quebec sawmills will be unaffected, Lopez added.

Tembec is a manufacturer of forest products – lumber, paper pulp, paper and specialty cellulose pulp – and a global leader in sustainable forest management practices. Tembec has operations in North America and France with some 3,250 employees and has annual sales of approximately $1.5 billion. The company operates two other sawmills in Quebec and five in Ontario.