Montreal-based Tembec Inc. said that its European subsidiary, Tembec SAS, has retained the services of investment bankers Houlihan Lokey to review strategic options for the two Kraft pulp mills held by subsidiaries of Tembec SAS. While still exploring other strategic options, Tembec SAS has initiated a process to explore the interest of third parties in acquiring these two mills, Tembec said.
The mills are located in Tarascon and Saint-Gaudens, France and have a combined annual capacity to produce 565,000 metric tons of pulp. The two sites also have in excess of 70 megawatts of electrical generating capacity between them, with a portion of that being available for sale to the grid. The review of strategic options does not include Tembec’s specialty pulp mill located in Tartas, in south western France, the company added.
