Tembec to Sell Skookumchuck, B.C. NBSK Pulp Mill to Paper Excellence

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Tembec Inc., Montreal, Que., Canada, announced that it will sell its NBSK (northern bleached softwood kraft) pulp mill and related assets and liabilities in Skookumchuck, B.C., Canada, to Paper Excellence Canada Holdings Corp. for $89 million, which includes working capital. Closing of the transaction is expected to occur in the second calendar quarter of this year.

Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd. The mill, where 290 employees currently work, started up in 1968. Its pulp is shipped to North American and Asian customers, primarily for tissue applications.

"This transaction supports the continuing transformation of the company and the reshaping of its business portfolio," said Tembec President and CEO James Lopez.

Tembec is a producer of forest products—lumber, pulp, paper, and specialty cellulose—with principal operations in Canada and France. It has some 3,700 employees and annual sales of approximately $2 billion