Tembec announced July 10 that there will be a temporary shutdown of its newsprint and sawmill operations in Kapuskasing.
The work stoppage runs from July 24 to Aug. 10 and is directly related to the ongoing challenging market conditions for newsprint and lumber.
Approximately 510 employees at all levels of the newsprint, sawmill and forestry operations will be affected.
“Market and operating conditions remain challenging for North American newsprint and lumber producers,” said Chris Black, executive vice-president and president of Tembec's paper devision. “The recent extremely low newsprint pricing and the continuing low demand for newsprint and lumber, coupled with the related need to manage inventory levels and working capital, make this curtailment unavoidable.”
The curtailment is expected to result in lost production of 11,000 tonnes of newsprint and 3 million board feet of lumber. Tembec indicated it will continue to monitor market conditions closely and will adjust operating rates accordingly.
Employees have been advised of the company’s decision.
More information on Tembec is available on its website at www.tembec.com.
