UPDATE 1-Tembec extends curtailment of Pine Falls operations
* Curtailment extended by three weeks
* Curtailment to reduce total production by 22,000 tonnes
June 25 (Reuters) - Canadian forest products company Tembec Inc (TMB.TO) said it has further extended the curtailment of the Pine Falls, Manitoba, newsprint operations by three weeks.
The effect of the overall curtailment is expected to result in a total reduction in production of 22,000 tonnes of newsprint, the company said.
"This extended curtailment is a result of unacceptably low prices offered in some markets due to supply and demand imbalances and the black liquor tax credits available to some newsprint mills in the southern U.S.," Chris Black, executive vice president and president of the Paper Group said.
North American demand for paper and newsprint has been falling off a cliff because of the economic slowdown.
Shares of the company closed at 55 Canadian cents Thursday on the Toronto Stock Exchange. (Reporting by Sakthi Prasad in Bangalore; Editing by Anil D'Silva )
