Sep 02, 2010. /Lesprom Network/. Tembec to permanently close its newsprint mill located in Pine Falls, Manitoba, Canada. The mill had been indefinitely idled due to a labour dispute on September 1, 2009. After examining a full range of options, the company initiated a sales process for the mill in early January 2010. This sales process has proved unsuccessful. After a thorough analysis of the situation, the company concluded that the permanent closure of the facility was the only viable option. Approximately 230 employees will be affected, company said in a statement received by Lesprom Network. "Although not an easy decision to make, the structural decline of the newsprint market and the cost structure of the mill prompted such a decision," said Chris Black, Tembec's Executive Vice President and President, Paper Group. "The company intends to act in a manner that will ensure that employees receive their severance pay in accordance with the collective agreement." As a result of this announcement, a net charge of approximately $8 million related to the closure will be recorded in the quarter ending September 25, 2010. Tembec is a large, diversified and integrated forest products company. The company's principal operations are located in Canada and in France.