Temiscaming, Quebec, Canada, 25 March 2009 – Tembec today confirmed that its sawmill in Senneterre, Quebec will shut down, effective 27 March 2009, for a minimum of three months. Employees affected by this shutdown were advised in meetings held yesterday.

“The shutdown is directly related to the current and foreseen weak market conditions for lumber, as well as the lack of a market for chip residuals,” said Michel Bastien, vice president, Forest Products Group, Quebec Region. The company indicated that it will continue to monitor market conditions closely and will adjust operating rates accordingly. 

Bastien also commented on a positive development relative to the critical issue of wood supply for the Senneterre sawmill. “Following a series of meetings with the Ministry of Natural Resources in Quebec, there have been commitments made that will result in a significant improvement in the supply of economic fiber for the mill,” said Bastien. “This has been an issue of great concern for the company and its employees over the past year and Minister Claude Béchard played a key role in bringing about this positive outcome.”

The Senneterre sawmill has an annual capacity of 150 million board feet of lumber and employs approximately 150 people.
 
Tembec is a large, diversified and integrated forest products company and a global leader in sustainable forest management practices. With operations principally located in North America and in France, the company employs approximately 7000 people. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available at www.tembec.com.