Tembec is suspending operations at its three sawmills in Québec due to the high cost of wood supply in the Abitibi-Témiscamingue region. The company says the wood costs make its sawmills uncompetitive given the persistent weak market prices for lumber in North America. The move affects 360 direct jobs at Tembec.
Tembec is still trying to obtain from the Québec Ministry of Forests, Wildlife and Parks an additional annual volume of some 300,000 cubic metres of softwood to ensure the long-term operations of its three Abitibi-Témiscamingue sawmills.
As of May 25, Tembec’s La Sarre, Senneterre, and Béarn, QC, sawmills will suspend operations for a period of two weeks, removing approximately 12 million board feet of production.
In the west, Interfor will curtail operations at its Tacoma, WA, sawmill on May 22. The company cited high log costs and productivity-related issues. Market conditions and the time it takes to complete operational improvements will factor in any restart date.
Interfor recently bought the sawmill from Tacoma-based Simpson Lumber Company, which built it in 2001.
Interfor has recently reduced hours at its mills in Molalla and Gilchrist, OR and Port Angeles, WA, as well as Canadian facilities in Adams Lake and Grand Forks, BC.