Friday, June 5, 2009

Elko and Canal Flats Mills Shutdown June 2009

The Elko and Canal Flats mills are to be shut down for minimum of three weeks beginning June 15. The anticipated date of return to production will be July 6, 2009.

The reason for this shutdown is the high Canadian dollar. Expectations from Tembec are that the price of lumber will continue to rise from the current $175 per thousand FBM to above $200. That would trigger the cost effectiveness of operating the sawmills versus keeping them closed, even if the dollar remains at 92 cents US.

But, predicting the prices of commodities and the value of currency that far down the road is not certain. There is no guarantee on when the mills will re-start.

No comments: