Tembec restructuring in Temiscaming

Tembec is restructuring its operations at its Temiscaming mill in an effort to save money and remain competitive.

"It is no secret that the forest products industry is in a period of great challenge. However, the issue at Temiscaming runs deeper than that," said John Valley, Tembec's vice-president of business development and corporate affairs. "It is Tembec's objective to get the cost structure of the Temiscaming site to a point where it generates enough free cash flow to allow the company to make the significant capital investments we see necessary to leave this site well positioned and competitive."

The North Bay Nugget newspaper has been receiving emails from the employees at the mill who are worried that Tembec might be making a move to contract out jobs. They told the newspaper that meetings are taking place this week among union members and management.

Valley did not respond directly to the concerns raised by the employees when interviewed by The Nugget, but he did point to labour cost per unit produced and delivered fibre costs as two key areas that will be initially focused on for cost reduction. Valley said other opportunities to improve site efficiency will also be pursued.

Source:

Trouble brewing in Temiscaming — Tembec restructuring organization (The Nugget)