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Tembec Announces Market-Related Downtime at Pulp Mills and Sawmills
Temiscaming, Quebec, Canada, 04 November 2008 – Tembec today announced a series of coordinated production curtailments affecting its three high-yield pulp mills in British Columbia and Quebec, and its British Columbia softwood kraft mill. The company also announced market related downtime for two Quebec sawmills.

Relative to the company’s high-yield pulp operations, the Temcell mill in Temiscaming, Quebec, will curtail production by shutting one line of production until 30 November; the Chetwynd, British Columbia, operation will shut down from 15 November to 01 December; and the Matane, Quebec, mill from 01-27 December. The Skookumchuk, British Columbia, softwood kraft mill will take a two-week shut down beginning 09 November and will resume production on 22 November. The combined effect of these outages will reduce pulp production by 38,575 metric tons.

The company also announced that its La Sarre and Taschereau sawmill complexes will be idled for a minimum of two months, commencing on 14 November.

The company indicated that these decisions were in response to challenging market conditions and the need to manage capacity, inventory levels, and working capital in a prudent and disciplined manner.

Management has informed employees at affected sites of the company’s decision.

The hardwood high-yield pulp mills of Temcell, Matane, and Chetwynd respectively produce 300,000, 230,000 and 250,000 metric tons annually. Skookumchuk produces 270,000 metric tons of softwood kraft pulp. Taschereau and La Sarre stud lumber production capacity is 200,000 mbf/year.

Tembec is a large, diversified and integrated forest products company that is a global leader in sustainable forest management practices. With operations principally located in North America and in France, the company employs approximately 8000 people. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available at www.tembec.com.


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