Tembec wants to sell its two kraft mills in Europe

Tembec Inc. today confirmed that Tembec SAS, its European subsidiary, has retained the services of investment bankers Houlihan Lokey to review strategic options for the two Kraft pulp mills held by subsidiaries of Tembec SAS.

While still exploring other strategic options, Tembec SAS has initiated a process to explore the interest of third parties in acquiring these two mills.

The mills are located in Tarascon and Saint-Gaudens, France and have a combined capacity of 565,000 metric tonnes of pulp capacity. The two sites also have in excess of 70 megawatts of electrical generating capacity between them, with a portion of that being available for sale to the grid.

The review of strategic options does not include the Tembec SAS specialty pulp mill located in Tartas.