Last week, Tembec announced a series of curtailments of sawmill production in the midst of softening demand and prices for lumber. Specifically, the Company will shut down its British Columbia Elko and Canal Flats sawmill and planer plants for two weeks, one in early October and another in early November. These shutdowns will also force a reduction in production at the Company’s finger joint facility in Cranbrook, B.C. for four weeks, two in October and another two in November.

“These shutdowns are a consequence of the prolonged downturn in the US housing market and the directly related impact on the demand and price for lumber,” said Dennis Rounsville, Executive Vice President and President of Tembec’s Forest Products Group. “With these market conditions expected to continue for the next several quarters, we need to act responsibly and adjust our production levels to current and foreseen market demand for lumber.”

The Elko, Canal Flats and Cranbrook mills, with an annual capacity of 475 million board feet (mmbf) employ roughly 350 people.

“Through the curtailments, Tembec intends to maintain its FSC-certified lumber deliveries to support our customers in meeting market and public demand for environmentally friendly solutions. With 10.4 million hectares of Forest Stewardship Council (FSC)-certified forestland under management, Tembec offers the largest range of FSC-certified products in the marketplace,” concluded Mr. Rounsville.

Management has informed employees at designated sites of the Company’s decision.