PLANT

Tembec suspends operations at Senneterre sawmill

Closing begins Feb. 8, 148 jobs affected by weakness in softwood, high costs.


MONTREAL — Tembec, citing weakness in the North American softwood lumber market and high wood costs, is indefinitely suspending operations at its sawmill in Senneterre, Que., putting 148 employees out of work.

The Montreal-based company, which last week reported strong results in the first quarter but an adjusted EBITDA loss in the lumber segment, said the suspension will begin Feb. 8.

The sawmill in the Temiscaming region in northwestern Quebec has an annual production capacity of 100 million board feet.

Tembec CEO James Lopez said in a news release that the decision is necessary to minimize losses.

“We continue to carefully assess the evolution of market conditions and to work with the Government of Quebec to find solutions to the high cost of fibre,” he said.

Tembec operates two other sawmills in Quebec and five in Ontario.

The forest products producer manufactures lumber, pulp, paper and specialty cellulose. It has annual sales of about $1.5 billion and 3,250 employees in Canada and France.

© 2016 The Canadian Press

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