Montreal, Quebec, Canada 22 June 2012 -- Tembec officially inaugurated a new bark boiler today at its Béarn sawmill in the Abitibi-Témiscamingue region of Quebec. This new boiler represents a $6 million investment announced by the Company last July. Construction began in the fall of 2011 and was completed on schedule in the spring of 2012. “The quality of the work is proof of the dedication of all who contributed to the execution of this project. Their efforts allowed us to achieve this without any accidents, within budget and on schedule,” stated Michel Bastien, Tembec Vice President, SPF, Quebec Division, Forest Products Group.

This investment will reduce energy costs by replacing two existing oil-fired 6000-kW boilers with a single bark-fired boiler. The new boiler’s capacity of 7000-kW will provide heating for the sawmill buildings as well as the required energy to operate the sawmill’s two kilns. “Thanks to this initiative, our facilities will be significantly more competitive, more efficient and more environmentally friendly. Not only will we operate a more efficient sawmill, but we will also enhance the quality of the environment as well as supply a portion of the energy needs of our specialty cellulose plant in Témiscaming,” underlined Michel Bastien. Eliminating the annual consumption of 2.8 million litres of fuel will reduce greenhouse gas emissions (GHG) by 88% at the site.

Tembec’s sawmill in Béarn employs 135 people and ships its lumber within Canada and to the United States, mainly to the Province of Quebec, Ontario and the Great Lakes area. It also provides wood chips as raw material and biomass as a source of energy to the Tembec specialty cellulose plant in Témiscaming. The long-term viability of the Témiscaming cellulose plant is tied partly to the sawmill in Béarn. Because this mill produces quality wood chips and quality biomass, and because it operates nearby, it qualifies as a supplier of choice for the cellulose plant. The Béarn mill therefore enables the Témiscaming plant to reduce transportation costs for these supplies.

Tembec is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France. With annual sales of approximately $2 billion, Tembec has 4,000 employees and is listed on the TSX (TMB).