Tembec permanently closes Pine Falls
September 2nd, 2010 | Posted in Mill Closures & Layoffs | 5 comments »
Tembec has announced the permanent closure of its newsprint mill located in Pine Falls, Manitoba.
The mill had been indefinitely idled due to a labour dispute on September 1, 2009. After examining a full range of options, Tembec initiated a sales process for the mill in early January 2010. This sales process has proved unsuccessful. After a thorough analysis of the situation, Tembec concluded that the permanent closure of the facility was the only viable option. Approximately 230 employees will be affected.
“Although not an easy decision to make, the structural decline of the newsprint market and the cost structure of the mill prompted such a decision,” said Chris Black, Tembec’s Executive Vice President and President, Paper Group. “The Company intends to act in a manner that will ensure that employees receive their severance pay in accordance with the collective agreement.”
As a result of this announcement, a net charge of approximately $8 million related to the closure will be recorded in the quarter ending September 25, 2010.
Source: Tembec
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Well sorry for you guys but this should help out anybody that sells in your market place.
Nice sensitive commment. Like going to a funeral and telling the widow well at least your husbands death means more oxygen and food for the rest of us. You should go to Pine Falls bar and make the same comment this weekend and then maybe we can speak to your widow and tell her to look on the bright side.
Everyone should get used to news like this. After the White Birch-Black Diamond Auction, say goodbye to FF Soucy, and Papierre-Mason. If you are old, slow, inefficient, and far from the marketplace it is inevitable you will not survive unless you reinvent yourself, and make a product someone actually wants to buy for more than it costs you to make and ship it. Anyone in Manitoba or else where who is “surprised” or “shocked” that their mill is closing, has had their head in the sand or been listening to the CEP. NEWSPRINT is dieing folks, much like blacksmith shops who no longer were needed to shoe horses when cars became mainstream last century. The smart blacksmith changed over to tires and auto service/fuel. The ones who refused to accept change went out of business.
Does Pine Falls only have one watering hole ? Maybe he could fill up first in Gatineau or Dolbeau or Beaupre or Dalhousie or Grand Falls…on and on.
This only goes to show you “consessions don’t save mills !
Concessions screw over the workers at the mills they intended to keep open from the beggining