Tembec curtails lumber production

Temiscaming, Quebec-based Tembec has announced it will curtail sawmill production at two British Columbia locations – Elko and Canal Flats.

The company will shut down the two plants for two weeks, once in early October and another in early November, according to a statement, due to soft demand for lumber products in the United States.

In turn, the shutdowns will “force reduction in production” at the company's finger joint facility in Cranbrook, B.C. for four weeks. The company also will cease operations at the end of October in Cochrane, Ontario, for a five-month period.

"These shutdowns are a consequence of the prolonged downturn in the U.S. housing market and the directly related impact on the demand and price for lumber," said Dennis Rounsville, executive vp and president of Tembec's Forest Products Group. "With these market conditions expected to continue for the next several quarters, we need to act responsibly and adjust our production levels to current and foreseen market demand for lumber."

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