Tembec to lay off 1,400 workers as production curtailed
Last Updated: Tuesday, February 3, 2009 | 6:31 AM PT
CBC News
Forest products company Tembec said Tuesday it will take downtime at all of its British Columbia facilities, plus a Manitoba newsprint mill and an Ontario sawmill, due to depressed markets for lumber, pulp and newsprint.
The company said the shutdowns in B.C. will affect 975 employees, while the Manitoba closure will hit 300 employees. The Ontario mill has roughly 125 workers.
Tembec said lumber markets and prices continue to be affected by the ongoing downturn in the U.S. housing market, while pulp markets have been hit on a worldwide scale by the recession.
The company added that the newsprint market is still in a "structural" decline that has been exacerbated by the recession.
"The extensive idlings announced today follow a careful review of current and forecasted market conditions," said Jim Lopez, Tembec's president and CEO.
"As difficult as these decisions may be for employees, contractors and communities, they are necessary to minimize losses, manage cash and reduce inventories. We will obviously continue to monitor market conditions closely and will manage operating rates accordingly," he said.
The company said it will be reviewing its "fibre supply and procurement needs as a result of these shutdowns, and will respond accordingly."
Share Tools
Latest British Columbia News Headlines
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Surrey RCMP seek hit-run driver
- Police are looking for a light-coloured Chrysler with damage to the driver's front side after a pedestrian was hit in Surrey, B.C., early Sunday morning. more »
- B.C. man who scaled Everest returns home
- A Vancouver man who climbed the world's highest mountain is back home and talking about the adventure. more »
- Fort Langley restaurant damaged in fire
- A sushi restaurant in Fort Langley, B.C., was damaged in a fire early Sunday morning. more »
Top News Headlines
- Canadian Pacific strikers face back-to-work legislation
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Railway strike if necessary, after both CP and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt says she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
- B.C. NDP calls for unity in fighting coast guard closure
- Surrey RCMP seek hit-run driver
- B.C. man who scaled Everest returns home
- Fort Langley restaurant damaged in fire
- Passengers' families sue for fatal B.C. plane crash
- B.C. Coast Guard Auxiliary gets new name
- Tsunami motorcycle heading to Harley museum
- Psych ward escapes worry neighbours
- Gang forum honours Surrey 6 victim

