Displaying items by tag: Tembec

Tembec has announced that its wholly owned subsidiary Tembec Tartas SAS will be making an investment in a green energy project at its specialty dissolving pulp mill located in Tartas, France. The project, which includes a new 18 megawatt steam turbine and improvements to the existing boiler system, will cost approximately 16 M€ (C $21 million). It is expected to be in operation during the second calendar quarter of 2012. Once the turbine is in full operation, the mill’s annual EBITDA should improve by 6 M€ (C $8 million).

The project will be funded in part by a 7.5 M€ loan (C $10 million) to be provided by a syndicate of French banks. The loan has a term of seven years at a rate of Euribor 3 months plus 2%.

With approximately 300,000 metric tonnes of capacity, Tembec is among the global leaders in the specialty dissolving pulp business. Tembec’s specialty cellulose division (Cellutions) is a leading producer of dissolving pulp for the cellulose derivatives market that includes Cellulose Acetate, Cellulose MCC, Cellulose Ethers and Nitrocellulose.

“Tembec’s specialty dissolving business has been and will remain one of the Company’s core businesses. The Tartas turbine investment will reposition that mill as a first quartile cost producer of specialty dissolving pulp generally, and particularly in its key grades of Cellulose Ethers and Nitrocellulose where it is the world’s largest supplier,” said Yvon Pelletier, Executive Vice President and President, Specialty Cellulose and Chemical Group.

“Ten years ago, the Tartas mill was restricted in its ability to produce these dissolving grades. Today, through a series of investments, the mill now has the capability to direct virtually all of its output into these products, with more than 90% of the production capacity currently dedicated to the specialty dissolving business. This project builds on those earlier investments and will result in energy, environmental and economic benefits – a great combination,” concluded Mr. Pelletier

In addition to the projected economic benefits, this investment will improve mill reliability with the retirement of a smaller and less efficient 40-year old steam turbine. This project will also help the site avoid disruptions associated with power interruptions and fluctuations from the grid.

“Tartas is a key facility in one of Tembec’s core businesses. The project announced today will position the Tartas mill as one of the lowest cost producers of specialty dissolving pulp in the world,” said James Lopez, President and CEO of Tembec. “This investment is consistent with Tembec’s overall strategy of having all of its assets in the first or second quartile of their respective cost curves.”

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company’s principal operations are located in Canada and in 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 on its website at www.tembec.com

Tembec has announced the permanent closure of its newsprint mill located in Pine Falls, Manitoba. The mill had been indefinitely idled due to a labour dispute on September 1, 2009. After examining a full range of options, the Company initiated a sales process for the mill in early January 2010. This sales process has proved unsuccessful. After a thorough analysis of the situation, the Company concluded that the permanent closure of the facility was the only viable option. Approximately 230 employees will be affected.

“Although not an easy decision to make, the structural decline of the newsprint market and the cost structure of the mill prompted such a decision,” said Chris Black, Tembec’s Executive Vice President and President, Paper Group. “The Company intends to act in a manner that will ensure that employees receive their severance pay in accordance with the collective agreement.”

As a result of this announcement, a net charge of approximately $8 million related to the closure will be recorded in the quarter ending September 25, 2010.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company’s principal operations are located in Canada and in 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 on its website at www.tembec.com.

This press release includes “forward-looking statements” within the meaning of securities laws. Such statements relate to the Company’s or management’s objectives, projections, estimates, expectations, or predictions of the future and can be identified by words such as “anticipate”, “estimate”, “expect” and “project” or variations of such words. These statements are based on certain assumptions and analyses by the Company that reflect its experience and its understanding of future developments. Such statements are subject to a number of uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs, and other factors identified in the Company’s periodic filings with securities regulatory authorities in Canada and the United States. Many of these uncertainties are beyond the Company’s control and, therefore, may cause actual actions or results to differ from those expressed or implied herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information:

John Valley
Executive Vice President, Business Development and Corporate Affairs
Tel: 416-775-2819
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Michel J. Dumas
Executive Vice President, Finance and Chief Financial Officer
Tel: 819-627-4268
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The employee group considering the purchase of the shuttered Pine Falls newsprint mill has told the mill's owner, Tembec, that the deal is off. The group concluded it could not make a viable business case for the purchase.

According to the Winnipeg Free Press online edition on Aug. 24, Bruce Hansen, a consultant advising the buyout group, said the group was "quite astute in their approach" to the task and did its due diligence. It was just powerless to overcome the many barriers that have defeated so many other companies and would-be forestry industry investors in recent years.

"This is a difficult time for the former Tembec workers, their families and the buyout group who have worked so long to preserve the mill and the jobs that are critical to the town," said Manitoba Labour and Immigration Minister Jennifer Howard. "I commend the extensive efforts and diligence undertaken by the buyout group as it explored the financial viability of purchasing the mill from Tembec."

Tembec has indicated its full support for an energy conservation program announced earlier today by Ontario Energy and Infrastructure Minister Brad Duguid. The Company believes this program will encourage energy management practices that will have both a positive environmental impact and a positive impact on the competitiveness of several key Ontario industries.

The initiative will create a policy that rewards investments in efficiency and demand management and recognizes energy efficient practices by large industrial users. It will essentially bring the concept and benefits of time of use power currently available to residential users to industrial consumers.

“This program will result in energy, environmental and economic benefits—a great combination. By encouraging a shift away from peak demand periods, both the need for and use of peaking plants will be lessened, resulting in a reduced reliance on fossil fueled facilities,” said Jim Lopez, Tembec’s President and CEO. “With an industrial time of use framework available, the average cost of power, a critical cost element for many industries, will be lower. This will result in improved competitiveness and greater potential for job security.”

“This initiative comes at a critical time for the Ontario economy generally and the Northern Ontario economy in particular. Tembec fully supports this initiative,” concluded Mr. Lopez.

Tembec is a large, diversified and integrated forest products company which stands as the 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 on its website at www.tembec.com.

This press release includes “forward-looking statements” within the meaning of securities laws. Such statements relate to the Company’s or management’s objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as “will”, “anticipate”, “estimate”, “expect” and “project” or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments and may not be appropriate for any purposes other than what is stated herein. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.

Information:

John Valley
Executive Vice President, Business Development and Corporate Affairs
Tel.: 416-775-2819
This email address is being protected from spambots. You need JavaScript enabled to view it.

Michel J. Dumas
Executive Vice President, Finance and Chief Financial Officer
Tel.: 819-627-4268
This email address is being protected from spambots. You need JavaScript enabled to view it.

Recent references in media coverage of $300 million of investment related to ratification of new collective agreement in Temiscaming, Quebec inaccurate and misleading

Tembec today issued a statement to clarify inaccurate information contained in newspaper articles related to the ratification of a new collective agreement with employees at operations in Temiscaming, Quebec. The coverage quoted a senior Union official as referencing a commitment to an investment program of $300 million. The Company agrees that any continuation of the concessions agreed to in the collective agreement beyond July 1, 2012 is conditional on significant future investments. However, no specific dollar amounts are referenced in the agreement.

The Company is in the process of evaluating a number of options for capital upgrades to the site aimed at maintaining and enhancing its long term competitiveness. Once this evaluation is completed, options will be brought forward to the Company’s Board of Directors. Mill capital investment plans normally span a 5 to 10 year period.

Tembec is a large, diversified and integrated forest products company which stands as the 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 on its website at www.tembec.com.

This press release includes “forward-looking statements” within the meaning of securities laws. Such statements relate to the Company’s or management’s objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as “will”, “anticipate”, “estimate”, “expect” and “project” or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments and may not be appropriate for any purposes other than what is stated herein. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.
Information:

John Valley
Executive Vice President, Business Development and Corporate Affairs
Tel.: 416-775-2819
This email address is being protected from spambots. You need JavaScript enabled to view it.

Michel J. Dumas
Executive Vice President, Finance and Chief Financial Officer
Tel.: 819-627-4268
This email address is being protected from spambots. You need JavaScript enabled to view it.