Montreal, Quebec, Canada 10 July 2012 -- Tembec today announced that, due to market related conditions, it will indefinitely idle its high-yield pulp mill located in Chetwynd, British Columbia, as of September 16, 2012.

“The high-yield pulp market has continued to soften over the past year. At today’s price levels, it is virtually impossible to maintain viable operations given the current cost structure of the Chetwynd mill,” stated Chris Black, Tembec Executive Vice President and President of the Paper and Paper Pulp Group.  “This is a difficult decision that we have not taken lightly since it has an impact on employees and on the region. We will continue to monitor the market and, in due course, reassess the situation accordingly,” he added.

High-yield pulp is used in printing and writing papers, paperboard as well as tissue and towelling. Pulp produced at the Chetwynd mill is shipped to primarily Asia. Tembec is the world’s leading producer of high-yield pulp. A total of 115 employees are currently employed at the Chetwynd mill, which was built in 1990 and has an annual production capacity of 240,000 tonnes. Tembec purchased the mill in 2002.

Tembec is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 4,000 employees and annual sales of approximately $2 billion.  Tembec is listed on the TSX (TMB). Additional information on Tembec is available on its website at www.tembec.com.

This press release includes “forward-looking statements” within the meaning of securities laws. Such statements relate, without limitation, to the Company’s or management’s objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as “may”, “will”, “could”, “anticipate”, “estimate”, “expect” and “project”, the negative or variations thereof, and expressions of similar nature.  Forward‑looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in the Company’s periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company’s expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.