(Reuters) - Canadian forestry company Tembec Inc TMB.TO said it will indefinitely idle its high-yield pulp mill in Chetwynd, British Columbia, as the pulp market has continued to soften over the past year.
The Chetwynd mill, which employs 115 people and has an annual production capacity of 240,000 metric tons (264,555 tons), will be idled as of September 16, the company said.
“At today’s price levels, it is virtually impossible to maintain viable operations given the current cost structure of the Chetwynd mill,” Tembec Executive Vice President Chris Black said in a statement.
High-yield pulp is used in printing and writing papers, paperboard as well as tissue and toweling.
The mill, built in 1990, was bought by Tembec in 2002. Most of the pulp produced at the mill is shipped to Asia.
Tembec’s shares closed at C$2.28 on Tuesday on the Toronto Stock Exchange.
Reporting by Shounak Dasgupta in Bangalore; Editing by Viraj Nair