(Reuters) - Canadian forestry company Tembec Inc said it permanently closed its newsprint mill in Manitoba after the company failed to sell the facility, affecting about 230 employees.
The mill at Pine Falls had been idled since September 2009 following a labor dispute and the company had initiated a sales process in January this year.
The company, which has been seeing falling sales in its paper-making business due to the decline of the newsprint market, said it will ensure that employees receive their severance pay in accordance with a collective agreement.
Montreal-based Tembec’s shares, which lost about 6 percent of their value in the last three months, were trading down about a percent, or 1 Canadian cent, at C$1.69 Thursday on the Toronto Stock Exchange.
Reporting by Aftab Ahmed in Bangalore; Editing by Maju Samuel