Tembec scales back production

Tembec has announced further output cutbacks as a result of falling demand and prices for softwood lumber.

The Canadian producer will shutdown its British Columbia Elko and Canal Flats sawmill and planer units for two weeks at the end of October (combined these units have annual output of 475m bd ft). As a result, its Cranbrook finger joint plant will reduce production for a month.

Most radical, Tembec will close its Cochrane, Ontario mill at the end of October and leave it idle for five months. The plant has annual capacity of 170m bd ft and employs 200 people.

“These shutdowns are a consequence of the prolonged downturn in the US housing market and the directly related impact on the demand and price for lumber,” said Tembec Forest Products group president Dennis Rounsville. “With these market condtions expected to continue for the next several quarters, we need to adjust to current and forseen demand.”

He added that the company plans to maintain its FSC-certified lumber deliveries through this period. Thecompany has 10.4m ha of FSC-certified forestry.