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Tembec to Idle Pulp Mill in British Columbia
Temiscaming, Quebec, Canada, 11 June 2009 -- Tembec announced today that its pulp mill in Skookumchuck, British Columbia, will take at least two weeks of market-related downtime beginning the week of 29 June.

Tembec attributed this action to a range of considerations including the ongoing challenging market conditions for pulp and pulp consuming products, the rapid and significant strengthening of the Canadian dollar, and the lack of economically viable fiber. The company also indicated that the black liquor tax credit available to U.S. chemical pulp producers has added to these other issues and was a determining factor in this decision.

“The black liquor tax credit available to U.S. producers was absolutely a factor in this decision. It has allowed chemical pulp capacity that would otherwise be uneconomic to either remain in operation or be brought back into production, resulting in a material distortion in the pulp market in terms of both the supply/demand balance and pricing,” said James Lopez, Tembec's president and chief executive officer. “In the absence of an offsetting measure to allow Canadian producers to level the playing field, our industry and its employees will continue to pay the price through mill idlings and closures. This inequity must be addressed.”

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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