Tembec Inc. is engaged in the production and sale of forest, pulp, and paper products. The company produces approximately 880 million board feet of lumber, 310,000 tonnes of specialty cellulose, 805,000 tonnes of paper pulp, and 420,000 tonnes of paper. Segments Forest Products Segment This segment’s principal activity is focused on the production of softwood lumber. It also produces small amounts of engineered and specialty wood products. The softwood lumber sawmills produce various types, species and grades of lumber, which are used primarily for residential and commercial construction. Higher value softwood lumber products include J-Grade, TemPlus and TemSelect and machine stress rated grades. Hardwood lumber is used in various applications, including furniture, flooring and specialty residential and commercial applications. Timber Supply The company’s Canadian forestry operations are managed by the Forest Products Group. This includes the harvesting of timber, either directly or through contractors, and all silviculture and regeneration work required to ensure a sustainable supply of wood fibre to the manufacturing units. The Forest Products Group is also responsible for third-party timber purchases and wood chip production from whole log chippers, which are required to supplement total requirements. The company owns approximately 57,000 hectares of lands in British Columbia. These lands are located in the East Kootenay region. The company sold 1,875 hectares of lands to Jemi Holdings Ltd. and approximately 7,150 hectares of land to Teck Resources Limited. The company harvests timber under forest tenures held by it in British Columbia, Ontario and Quebec and has a total allowable annual cut of approximately 4.8 million cubic meters. Specialty Cellulose Pulp Segment This segment consists of two manufacturing facilities, which produce specialty cellulose pulps. The mills generate lignin as a by-product of the sulphite process, which is sold to third parties. The Temiscaming mill also includes a facility that produces ethanol as a by-product that is also sold to third parties. The segment also includes a stand-alone resin business, which produces powder and liquid phenolic resins at two operating sites in Quebec: Temiscaming and Longueuil. The company also operates a third facility located in Toledo, Ohio, United States, which manufactures powder and liquid amino-resins. The chemical business also periodically purchases and re-sells pulp mill by-product chemicals from third parties. The specialty cellulose pulp produced at the two pulp mills is high purity cellulose utilized in various specialized products, such as pharmaceuticals, food additives, and industrial chemicals. The Temiscaming specialty cellulose pulp mill also produces viscose grade pulp, which is utilized in the production of viscose staple fibre, which in turn is used to produce rayon for the textile industry. The company markets its specialty pulp on a world-wide basis, primarily through its own sales force, with a network of offices in Toronto, Canada, and Dax, France. This is consistent with the company’s strategy of selling directly to customers and establishing long-term strategic relationships. Paper Pulp Segment This segment consisted of four market pulp manufacturing facilities. The company produces hardwood grades made from maple, aspen and birch. The company markets its high-yield pulp mainly to Asian and European destinations, primarily through its own sales force, with a network of offices in Toronto, Canada, and Dax, France. Paper Segment This segment consists of two facilities with a total of three paper machines. The mill located in Kapuskasing, Ontario, produces newsprint on two machines. The facility located in Temiscaming, Quebec, produces multi-ply coated bleached board on one machine. Newsprint is used primarily for the publication of daily newspapers. History Tembec Inc. was founded in 1972.
tembec inc (TMB:Toronto Stock Exchange)
800 René-Lévesque Boulevard West
Montreal, QC H3B 1X9
|Borregaard ASA||51.75 NOK||-0.50|
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|Price/Cash Flow||NM||Not Meaningful|
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