Tembec announced July 15, 2008 an energy surcharge for all customers of its Specialty Dissolving Pulp business in Canada and France. The surcharge of US$100 per metric tonne will be implemented no later than October 1, 2008.
“In addition to bearing the high cost of direct energy usage in our mills, the skyrocketing cost of energy has had an impact on a number of other critical cost inputs in our business, such as freight, delivered wood and chemicals. The Company has seen the cost of outbound freight increase dramatically as virtually all of our transportation providers implemented energy surcharges. While these surcharges have been paid by Tembec thus far, the extent and duration of these increased costs can no longer be absorbed by the Company and we have no choice but to follow the actions of our suppliers and implement a surcharge”, said Yvon Pelletier, Executive Vice President and President of the Pulp Group.
James Lopez, President and CEO has said: “It is very unfortunate that it is necessary to push these energy costs downstream to our customers, and eventually on to their customers, but this is the reality for virtually all manufacturers in all regions of the world. For this reason, the Company is developing a strategy to recover energy cost escalations from customers of our other products as well.
” Tembec has indicated that the energy surcharge is temporary and will be adjusted as the price of energy modulates. Company representatives will be discussing the specific mechanisms for implementation with its Specialty Pulp customers. |
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