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Tembec Shuts Down its Senneterre, Quebec, Sawmill for Three Months
Temiscaming, Quebec, Canada, 24 April 2008 -– Tembec today announced a temporary shutdown for at least three months at its Senneterre sawmill in Quebec, effective 09 May 2008. The shutdown decision was based on the lack of wood supply in the region.

“The announced shutdown is a clear consequence of the volume reduction brought about by the latest Chief Forester’s evaluation of the allowable cut in the Paix des Braves territory," said said Michel Bastien, vice president, Quebec Division of Tembec’s Forest Products Group. "Compared to 2003, Tembec’s Senneterre mill is facing a 50% cut of its available log supply, which seriously impairs our ability to maintain year-round operations at current levels. Tembec finds this disproportionate reduction unacceptable. Those recent announcements are particularly alarming considering the extra efforts exerted and the losses sustained by Tembec in meeting the Natural Resources and Wildlife Department’s request to salvage the fire-killed timber and provide for accelerated reforestation,” Bastien said.

“The Natural Resources and Wildlife Department’s actions will result in extensive downtime at the Senneterre facility," added Dennis Rounsville, executive vice president and president of Tembec’s Forest Products Group. "Tembec has been impacted more than any other operator in the region. It is important that the Province responds positively to our request for unallocated volumes in order to give the Senneterre mill sufficient fibre to run closer to a year round basis,” Rounsville said.

The Senneterre sawmill has an annual production capacity of 145,000 mbf of SPF lumber and employs approximately 160 people. Another 100 people associated with forest operations will be affected. Management has already met with employees to inform them of the company’s decision.

Tembec is a large, diversified and integrated forest products company and 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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