Canadian lumber producer Tembec is to close a recently acquired mill in the Abitibi-Témiscamingue region, Quebec, as part of re-organisation plans designed to address challenging business conditions.
The La Sarre mill employing 150 people will shut on May 13 at a cost of C$14.6m, while public forest timber supply to the company’s spruce pine fir facilities in the region will decrease from 2.1 million m3 to 1.7 million m3.
Tembec says the changes to its mills are essential to meet the challenge of a strong Canadian dollar, a competitive marketplace, reduced raw material supply and the ongoing softwood lumber dispute between Canada and the US.
The company’s Taschereau mill is to operate mainly on a single production line, but on three shifts instead of two. The Senneterre facility and another mill in La Sarre will continue with three shifts, while Béarn will remain on two shifts.
Tembec says job losses will be minimised by new employment opportunities at its LVL factory at Amos, as well as the introduction of mitigating measures.
