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Management Side
Tembec Takes Downtime at its Kirkland Lake Engineered Wood Products Facility
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Temiscaming, Quebec, Canada, 14 May 2007 - Tembec announced today that its Kirkland Lake Engineered Wood Products facility (KLEWP) will shut down for at least two months, effective 21 May 2007. The situation will be reviewed in early July.

The Kirkland Lake site produces finger jointed lumber, made by joining shorter pieces of lumber and trim ends from lumber produced in sawmills. This value-added engineered wood product is suitable for high quality construction applications.

The company cited the extremely challenging market conditions for lumber products as the primary reason for the downtime.

"Demand for lumber is down sharply, driven primarily by the dramatic decline in the level of housing starts in the United States. This decline in demand has resulted in both lower prices for lumber and reduced operating rates in sawmills across eastern Canada," said Dennis Rounsville, executive vice president and president, Forest Products Group.

"With this situation, Kirkland Lake has been hit on three fronts. First, the supply of trim ends from area sawmills -- Kirkland Lake's primary feedstock -- has been greatly reduced as many of these sites take downtime. Second, like other lumber products, prices for this mill's output are very low. Finally, the extremely high value of the Canadian dollar has made a tough situation even worse," Rounsvillesaid.

The shutdown will affect approximately 35 employees. Personnel at the site were advised of the decision at meetings held earlier today.

Tembec is a large, diversified and integrated forest products company. With operations principally located in North America and in France, the company employs approximately 9000 people. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TBC. Additional information on Tembec is available on its website at www.tembec.com



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