July 10 Canadian forestry company Tembec Inc
said it will indefinitely idle its high-yield pulp mill
in Chetwynd, British Columbia, as the pulp market has continued
to soften over the past year.
The Chetwynd mill, which employs 115 people and has an
annual production capacity of 240,000 tonnes, will be idled as
of September 16, the company said.
"At today's price levels, it is virtually impossible to
maintain viable operations given the current cost structure of
the Chetwynd mill," Tembec Executive Vice President Chris Black
said in a statement.
High-yield pulp is used in printing and writing papers,
paperboard as well as tissue and towelling.
The mill, built in 1990, was bought by Tembec in 2002. Most
of the pulp produced at the mill is shipped to Asia.
Tembec's shares closed at C$2.28 on Tuesday on the Toronto