March 27, 2013
Tembec announced that it has reached an agreement to sell its NBSK pulp mill and related assets and liabilities located in Skookumchuck, British Columbia (Canada) to Paper Excellence Canada Holdings Corporation for a purchase price of $89 million, which includes working capital.
Tembec expects to close the deal, which remains subject to certain conditions and regulatory approvals, in the second calendar quarter of 2013.
Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd. The mill, which currently employs 290 workers, started up in 1968 and has the capacity to produce about 250,000 tons per year of NBSK pulp. Its pulp is shipped to North American and Asian customers primarily for tissue applications.