Tembec announces mill closures

After recent news of indefinite mill closures slated for Canfor sawmill operations in Radium, Vavenby and Rustad, Tembec Forest Products has now confirmed that it will be stopping production at two of its East Kootenay mill operations.

According to a United Steel Workers Union Web-blog, the shutdowns are slated for Tembec mills in Canal Flats and Elko. Scheduled to begin on June 15 and end three weeks later on July 6, mill management have said the closures may continue if market conditions don’t improve.

The union’s blog says the shutdowns can be blamed on the high Canadian dollar.

“Expectations from Tembec are that the price of lumber will continue to rise from the current $175 per thousand FBM (foot board measure) to above $200,” the blog said. The higher price point would bring back the cost-effectiveness of operating the sawmills, versus keeping them closed, even if the dollar remains at $0.92 US.

The re-start dates came with caution, however. The union warns that predicting the price of commodities and the value of currency, especially that far in advance, is not certain.

“There is no guarantee on when the mills will re-start.”

Check out the blog at: http://elkoecho.blogspot.com/2009/06/elko-and-canal-flats-mills-shutdown.html

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