Tembec's Chetwynd Pulp Mill Down 14 - 18 Days after Last Week's Fire

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Tembec, Temiscaming, Que., Canada, reports that a fire this past week at its Chetwynd, B.C., high yield pulp mill, caused no injuries, with damage primarily concentrated in the log storage and chip pile area of the mill site. There was also some damage to the scales, chip receiving and unloading equipment, chip conveyors, and related electrical services. Assessments by mill personnel and outside resources have indicated that damage to the pulp production area of the mill is relatively minor. In terms of direct loss, it is estimated that roughly 40,000 cubic meters of fiber (chips and logs) were destroyed. While the chip and log piles continue to smolder, the situation is considered well under control.

Site personnel and outside resources are already beginning their work at the mill to address electrical and mechanical repairs, with procurement and delivery of necessary materials and equipment already well underway. Current estimates are that the mill will be out of service for between 14 and 18 days from the date of the fire (late afternoon of June 30), resulting in lost production of approximately 10,000 metric tons. The company indicated that there will be no disruption of supply to contract business, given the fact that it has two other high yield pulp mills from which to supply the needs of its customers.

Tembec noted that it maintains property and business interruption insurance on all of its facilities and the deductible to be absorbed by the company on large claims is $5 million. This event will likely exceed this deductible limit.