Tembec announced the permanent closure of its newsprint mill located in Pine Falls, Manitoba. The mill had been indefinitely idled due to a labour dispute on September 1, 2009. After examining a full range of options, the company initiated a sales process for the mill in early January 2010. This sales process has proved unsuccessful. After a thorough analysis of the situation, the company concluded that the permanent closure of the facility was the only viable option.
“Although not an easy decision to make, the structural decline of the newsprint market and the cost structure of the mill prompted such a decision,” said Chris Black, Tembec’s Executive Vice President and President, Paper Group