TEMISCAMING, Que. - Tembec Inc. (TSX:TMB) is further cutting back pulp production, announcing a one-week shutdown at its mill in Matane, Que.
The temporary shut-down, which begins Sept. 21, will reduce pulp output at Matane by 5,000 tonnes, the forestry company announced Wednesday.
Tembec said the shutdown will affect 60 out of the mill's total workforce of 120.
"This latest production curtailment follows recent announcements related to our Temcell and Tarascon pulp operations and is intended to prudently manage both inventory levels and working capital," Yvon Pelletier, president of Tembec's pulp group, said in a statement.
"This decision comes amidst declining pulp demand in Europe and Asia, prime markets for our Matane pulp mill. The shutdowns announced to date will reduce our total annual production by 21,500 tonnes."
The Matane mill has an annual production of 250,000 tonnes of hardwood high-yield pulp.
Tembec shares traded Wednesday at $2.54, down 25 cents or nine per cent.
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