Montreal-based Tembec Inc. (TSX:TMB) will idle its Chetwynd, B.C., pulp indefinitely as of September 16, the company has announced.
“The high-yield pulp market has continued to soften over the past year,” said Chris Black, Tembec executive vice-president and president of the Paper and Paper Pulp Group.
“At today’s price levels, it is virtually impossible to maintain viable operations given the current cost structure of the Chetwynd mill,” he added.
The Chetwynd mill currently employs 115 people.
Black called the move a “difficult decision” in that it will affect employees and the region.
“We will continue to monitor the market and, in due course, reassess the situation accordingly,” he said.
The Chetwynd mill has a capacity of 240,000 tonnes, with the majority of its produced pulp shipped to Asia.
