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Tembec writes down value of investment.

Tembec writes down value of investment

Tembec Inc. has written down the value of its investment in Temboard Ltd. in Temiscaming, Que.

The $32.1-million write-down is nearly half of the $65 million the company invested to construct the plant and start operations.

Jefferson Smurfit Corp of St. Louis, Mo., had taken a similar write-down earlier this year. Montreal-based Tembec is expected to purchase Jefferson Smurfit's stake in the mill by the end of the year.

The write-down, as well as some refinancing with the company's bankers, allows Tembec to start from scratch as it attempts to get the mill - which produces high-quality paper packing board - to full production. However, Tembec's move has also resulted in $29.7-million loss for the first half of the year and a $31.9-million loss for the second quarter.
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Title Annotation:Report on Forestry
Publication:Northern Ontario Business
Date:Sep 1, 1991
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