Tembec Evaluating Options for European Kraft Mills

Tembec Inc., Temiscaming, Que., Canada, this past week confirmed that Tembec SAS, its European subsidiary, has retained the services of investment bankers Houlihan Lokey to review strategic options for the two kraft pulp mills held by subsidiaries of Tembec SAS. The company notes that while still exploring other strategic options, Tembec SAS has initiated a process to explore the interest of third parties in acquiring these two mills.

The two kraft mills are located in Tarascon and Saint-Gaudens, France, and have a combined capacity of 565,000 metric tpy of pulp capacity. The two sites also have in excess of 70 MW of electrical generating capacity between them, with a portion of that being available for sale to the grid. The review of strategic options does not include the Tembec SAS specialty pulp mill located in Tartas.

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