Q3 Paper Outlook — Big Paper Cuts

Tembec does not expect the short-term outlook for pulp to improve either. "Although we have seen some recovery in demand, as evidenced by significantly higher shipment volumes, pricing has suffered," reported company executives. "The recent weakening of the Euro against the dollar is also problematic. We do not expect to see any price recovery in calendar year 2001." Tembec is also planning approximately 50,000 tons of paper and pulp curtailment in June.