Tembec announced plants to shutter its Kapuskasing, Ontario newsprint mill for two weeks the second half of January. The downtime will reduce production by around 13,000 metric tons.
In addition to the newsprint operation, the company’s sawmill at the Kapuskasing site will also be closed for the same two-week period next January.
The company cited a strong Canadian dollar, in comparison to the U.S. dollar, making it more difficult to ship material into the United States. And, since a majority of the finished newsprint from the Ontario mill is shipped to the United States, the currency differences is making it more difficult to ship.
Moreover, Ontario’s industrial electrical rates are now among the highest and most volatile in North America, with January being a particularly high cost month. The combination of these two factors has led to the decision.
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