November 21, 2011 / 8:21 PM / 6 years ago

UPDATE 1-Tembec to sell flooring assets; shares fall

(Follows alerts)

Nov 21 (Reuters) - Canadian forest products maker Tembec Inc will sell some of its non-core assets to a private company for C$13 million ($12.5 million) as it focuses on its core business of production of wood, pulp, papers, paperboard and chemical products.

The Quebec-based company’s shares were down 6 percent at C$2.52 -- their lowest in five weeks -- in afternoon trading on the Toronto Stock Exchange.

Tembec said it planned to close a hardwood flooring plant in Huntsville, Ontario which will lead to 63 job cuts.

The company said it will take a related one-time charge of C$2 million, which will be reflected in its December-quarter results.

The plant, which generated sales of C$48 million in the last one year, will cease operations in January 2012.

However, Tembec’s hardwood sawmill operations in Huntsville will remain unaffected by the transaction, it said in a statement. ($1 = 1.041 Canadian Dollars) (Reporting by Ankur Banerjee in Bangalore; Editing by Maju Samuel)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below