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Tembec to close mill near Chetwynd

Tembec has announced that it will close its Chetwynd mill in September. Tembec says the mill will be closed indefinitely as of September 16, 2012 because of current market conditions.

"The high-yield pulp market has continued to soften over the past year. At today's price levels, it is virtually impossible to maintain viable operations given the current cost structure of the Chetwynd mill," stated Chris Black, Tembec Executive Vice President and President of the Paper and Paper Pulp Group.  "This is a difficult decision that we have not taken lightly since it has an impact on employees and on the region. We will continue to monitor the market and, in due course, reassess the situation accordingly," he added.

A total of 115 employees work at the mill that was built in 1990.

This isn’t the first time the mill has been closed.  Tembec shut down production in early 2009 and then started the mill back up in January of 2010.  The mill has been running ever since.

The mill created High-yield pulp which is used in printing and writing papers, paperboard as well as tissue and toweling. Pulp produced at the Chetwynd mill is shipped to primarily Asia.