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. Finally, the Cochrane, Ontario, mill will cease operation at the end of October and will remain idled for a period of five months.
“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. Cochrane on the other hand produces 170 mmbf and employs 200 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.
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