Tembec curtails production, 1400 workers affected
Feb 03, 2009. /Lesprom.com/. Tembec 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. About 1,400 people will be affected by layoffs that will range from two weeks to indefinitely.
Feb 03, 2009. /Lesprom.com/. Tembec 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 8 weeks starting February 9, 2009, the company said in a statement received by Lesprom Network.
The softwood Kraft pulp mill located in Skookumchuck will cease operating on February 23 for a 6-week period.
The high yield pulp mill in Chetwynd was idled on 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 CEO. "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 thousand mbf and 270 thousand mbf respectively, while the Cranbrook facility produces 25 thousand mbf of finger jointed lumber per year. The Hearst sawmill has an annual capacity of 160 thousand mbf. The Skookumchuck Kraft mill produces 270 thousand tonnes of softwood pulp per year, and the high yield pulp mill in Chetwynd has an annual capacity of 240 thousand tonnes of hardwood pulp. The Pine Falls newsprint facility produces 185 thousand tonnes annually.