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Tembec to Invest in Energy Improvements
Montreal, Quebec, Canada, 14 July 2011 – Tembec today announced a CAD 6 million investment in its Béarn sawmill, located in the Abitibi-Témiscamingue region of Québec. Support from the Province of Québec in the amount of CAD 3.6 million will come as a grant from the Heavy Oil Consumption Reduction Program. The construction phase will start in the fall of 2011 and will be completed in the spring of 2012.

This initiative, aimed at substantially reducing energy costs, entails replacing two existing 6000 kW boilers with a single 7000 kW boiler that will provide adequate heating for the sawmill. This new boiler also will provide the required energy to operate the mill’s two kilns.
The Heavy Oil Consumption Reduction Program, administered by the Agence de l’efficacité énergétique du Québec, helps heavy oil consumers move toward sustainable development while improving their competitive position by reducing their consumption. Financial assistance is offered to carry out various analyses and implement energy efficient measures relating to heavy fuel oil or to switch to other forms of energy containing fewer pollutants, such as natural gas, forest biomass and electricity. This program is financed by the Green Fund and falls under Action 1 of the 2006-2012 Climate Change Action Plan. Any company with a place of business in the province of Quebec where heavy oil is consumed and which meets the requirements of the program is eligible.
“Thanks to this investment, these operations will be significantly more competitive, more efficient and more ecological. Not only will we operate a more performing asset, but we will also contribute to the enhancement of the quality of the environment as well as continue to fulfill part of the energy needs at our specialty cellulose plant in Témiscaming,” said Michel Bastien, Tembec vice president, SPF, Quebec Division, Forest Products Group. Eliminating 2.8 million liters of fuel used annually for heating will reduce the Béarn operations greenhouse gas emissions by 88%.

Tembec’s sawmill in Béarn employs 135 people and ships its lumber within Canada and to the United States, mainly to the Province of Quebec, Ontario, and the Great Lakes area. It also provides wood chips as raw material and biomass as a source of energy to the Tembec specialty cellulose plant in Témiscaming.

“The long-term viability of the Témiscaming cellulose plant is tied partly to the sawmill in Béarn," said Yvon Pelletier, Tembec executive vice president and president, Specialty Cellulose and Chemical Group. "Because this mill produces quality wood chips and quality biomass, and because it operates nearby, it qualifies as a supplier of choice for the cellulose plant. The Béarn mill therefore enables the Témiscaming plant to reduce transportation costs for these supplies. ”

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