UPDATE 1-Tembec to idle British Columbia pulp mill for 2 weeks

* Says to idle mill for at least 2 weeks from June 29

* Lower demand for paper, black liquor tax hurt co

June 11 (Reuters) - Canadian forest products company Tembec Inc (TMB.TO) said it would idle its pulp mill located in Skookumchuck, British Columbia, for at least two weeks, amid lower demand for paper and packaging products and a strong Canadian dollar.

Tembec said the "black liquor" tax credit available to U.S. chemical pulp producers has added to these other issues and was a determining factor in this decision.

Paper manufacturers generally burn a biofuel called black liquor to power mills. Black Liquor is a by-product obtained while processing wood to get pulp for making paper. [nN24434222].

"In the absence of an offsetting measure to allow Canadian producers to level the playing field, our industry and its employees will continue to pay the price through mill idling and closures. This inequity must be addressed," Chief Executive James Lopez said in a statement.

Tembec shares, which have lost 27 percent of their value in a month, closed at 56 Canadian cents Wednesday on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Gopakumar Warrier)