Tembec to lay off 1,400 workers as production curtailed
Forest products company Tembec said Tuesday it will take downtime at all of its British Columbia facilities, plus a Manitoba newsprint mill and an Ontario sawmill, due to depressed markets for lumber, pulp and newsprint.
| Tembec closures | ||
|---|---|---|
| Plant | Length | Starts |
| Canal Flats sawmill (B.C.) | 8 weeks | Feb. 9 |
| Elko sawmill (B.C.) | 8 weeks | Feb. 9 |
| Cranbrook finger joint plant (B.C.) | 8 weeks | Feb. 9 |
| Skookumchuck Kraft pulp mill (B.C.) | 6 weeks | Feb. 23 |
| Chetwynd high-yield pulp million (B.C.) | indefinite | Feb. 2 |
| Pine Falls newsprint mill (Man.) | 2 weeks | Feb. 10 |
| Hearst sawmill (Ont.) | 6 weeks | Feb. 8 |
The company said the shutdowns in B.C. will affect 975 employees, while the Manitoba closure will hit 300 employees. The Ontario mill has roughly 125 workers.
Tembec said lumber markets and prices continue to be affected by the ongoing downturn in the U.S. housing market, while pulp markets have been hit on a worldwide scale by the recession.
The company added that the newsprint market is still in a "structural" decline that has been exacerbated by the recession.
"The extensive idlings announced today follow a careful review of current and forecasted market conditions," said Jim Lopez, Tembec's president and CEO.
"As difficult as these decisions may be for employees, contractors and communities, they are necessary to minimize losses, manage cash and reduce inventories. We will obviously continue to monitor market conditions closely and will manage operating rates accordingly," he said.
The company said it will be reviewing its "fibre supply and procurement needs as a result of these shutdowns, and will respond accordingly."