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Tembec Takes Further Sawmill Downtime
Temiscaming, Quebec, Canada, 12 June 2009 – Tembec today announced a series of market related temporary shutdowns affecting all its sawmills in northern Ontario.

The affected operations include the Kapuskasing sawmill, which will shut down for a period of one week beginning 06 July; the Chapleau sawmill, which will shut down for three weeks beginning 29 June; and the Cochrane and Hearst sawmills, which will each go down for six weeks beginning 22 June and 06 July, respectively. These idlings will affect employees at all levels at the sawmills, and in the forestry operations supporting these facilities. Approximately 500 employees will be affected by these combined temporary shutdowns.

“These shutdowns are a consequence to the rapid and significant appreciation in the value of Canadian dollar, continued weak markets for lumber, and the related need to manage inventories and working capital,” said Dennis Rounsville, executive vice president and president of Tembec’s Forest Products Group. “We will continue to monitor economic and market conditions closely and will manage operating rates accordingly.”

Employees at the affected Ontario sites have been advised of the company’s decision.

The company also confirmed that employees at its sawmills in Elko and Canal Flats, British Columbia were advised that those sites would be idled, effective 15 June, for a minimum of three weeks for similar reasons.

The affected northern Ontario sawmills have a total annual capacity of 550 million board feet and the British Columbia mills have a combined annual capacity of 450 million board feet.

Tembec is a large, diversified and integrated forest products company that is a global leader in sustainable forest management practices. The company’s principal operations are located in Canada and France. 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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