In the several years leading up to 2005, the economics of the forestry industry in eastern Canada deteriorated rapidly, undermining Tembec's profits. These factors included high wood costs, high energy costs, an appreciating Canadian dollar with respect to the U.S. dollar, the stiff duties imposed by the Softwood Lumber Dispute, intensifying global competition, and reduced allowable cuts in Quebec. Tembec, which had never closed a mill prior to .....more

Senior executives reflect on a failed joint venture with an Australian company, which attempted to build a state-of-the-art pulp mill. Environmental groups' criticism and the repercussions had caused the company to pull out at a cost of $12 million. (A sequel to this case is available titled Noranda: Environmental Communication (B), case 9A91L008).

The council of forest industries of British Columbia has launched a market development program to create new opportunities for Canadian wood products in China. Several of the members of this organization must decide on whether to participate in this program or pursue this market on their own.

The takeover of Alliance Forest Products by United States-based Bowater Inc. resulted in job loss for members of the Canadian board of directors and head office staff as well as loss of corporation shares from the Toronto Stock Exchange. Bowater's strategy to reduce costs and enhance productivity may result in additional Canadian job losses in the future. Corporations in the forest products industry are merging or acquiring companies to stay competitive. .....more

Senior executives reflect on a failed joint venture with an Australian company, which attempted to build a state-of-the-art pulp mill. Environmental groups' criticism and the repercussions had caused the company to pull out at a cost of $12 million. (A sequel to this case is available titled Noranda: Environmental Communication (B), case 9A91L008).

Four senior executives reflect on the changes the company has made since the collapse of the project to build a state of the art pulp mill. Have they learned how to deal with the continuing challenges of environmental communications? (This is a sequel to Noranda: Environmental Communication (A), case 9A91L007.)