Tembec Permanently Closes Pine Falls Newsprint Mill

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By: E&P Staff

Tembec, has announced it permanently shutter its Pine Falls, Manitoba, newsprint mill, which had been indefinitely for a year as a result of a labor dispute (E&P Online, Dec. 4, 2009) involving an employee lock-out. The mill has capacity to supply 180,000 metric tons of newsprint per year.

Reportedly the town’s largest employer, the closing will affect approximately 230 workers.

The Temiscaming, Quebec-based company failed to sell the mill earlier this year. In a statement, the company said that “after a thorough analysis of the situation, …permanent closure of the facility was the only viable option.”

Tembec Executive Vice President and Paper Group President Chris Black attributed the decision to “the structural decline of the newsprint market and the cost structure of the mill.”___The company will record a net charge of approximately $8 million related to the closure in the quarter ending September 25.

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