Canadian LVL producer Temlam and its subsidiary Jager Building Systems Inc have filed for bankruptcy.
Temlam, which supplies about 5% of North America’s LVL, is a joint venture business between lumber producer Tembec and Société Générale de Financement du Québec.
About 300 jobs at the venture’s various operations in Québec and Ontario are threatened by the development.
Tembec president and CEO James Lopez said that, as Tembec had recently completed a successful recapitalisation, it would not be prudent to bail out the joint ventures, especially in light of the current business climate and poor housing market.
Temlam’s two mills in Québec had started a two-month shutdown on September 5. Production at Jager’s Blainville mill in Ontario was also put on hold.
