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Fire Cuts Production at Tembec's High-yield Pulp Mill in Temiscaming by Half
Temiscaming, Quebec, Canada, 08 February 2007 – Tembec today announced that one of the two production lines at its Temcell high-yield pulp mill in Temiscaming sustained damage due to an explosion and a fire. As a result, one line will be idled until repaired, reducing production to 400 metric tons/day, or 50% of regular production.

"At this time, we expect that production will return to normal levels in approximately 30 days. Our priorities are now to conduct a thorough investigation of the cause of the event, complete the repairs as quickly as possible, and minimize any supply interruptions to our customers," said Yvon Pelletier, Tembec executive vice president and president, Pulp Group.

"This is an unfortunate event, but we are grateful that no one was injured and that there was no damage to the environment. We wish to thank our own on-site fire brigade, the Town of Temiscaming's first responders, and everyone else who did a great job in ensuring the safety of our employees and in preventing the blaze from spreading," Pelletier added.

Tembec's Temcell mill has an annual capacity of 300,000 metric tons of hardwood high-yield pulp and employs 105 production employees and staff. Tembec also produces hardwood high-yield pulp at two other sites: Matane, Quebec, and Chetwynd, British Columbia.

The cost of expediting required equipment repairs and the higher manufacturing costs associated with the reduced production volume are expected to reduce reported EBITDA and operating earnings by approximately CAD 5 million in the March 2007 quarter.

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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