Feb 13, 2009. /Lesprom Network/. Tembec will be eliminating 100 positions, freezing salaries and cutting other costs in response to tough times on the forestry industry, the company said in a press release received by Lesprom Network. "The actions announced today are extraordinary measures for our Company. However, these are extraordinary times for the economy generally, and for forest products in particular," said Jim Lopez, President & CEO. "The recapitalization of our Company completed a year ago gave us a strong balance sheet and liquidity. We intend to take the steps necessary to preserve that position, and to allow Tembec to weather this economic storm. We regret the impact of these actions on affected employees and their families." The staff reductions will involve terminations, layoffs and retirements. The wage freeze will affect management and staff. Business travel will be curtailed. Tembec said it will permanently close its hardwood sawmill in Mattawa, Ontario, which has been idle since July. It had employed 59 people. Earlier, the company announced the temporary shutdown of facilities in four Canadian provinces and in France in response to depressed market conditions for lumber, pulp and newsprint. Tembec said it has also embarked on a cost reduction initiative with suppliers, and is looking for a 10% reduction from material suppliers and a 20% reduction from service suppliers. Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices.