Scierie St-Michel Suspends Operations

We announce the temporary suspension of our operations effective immediately until October 13, 2025. This is a very difficult decision to make and our thoughts are with our employees, subcontractors and all of the families affected by this decision near and far. The shutdown is caused by the U.S. government’s increase in compensatory and anti-dumping duties to more than 34.45% and threats of additional taxes ahead. We wished until the last minute that the Canadian government would reach an agreement to avoid the worst but it was not possible. This announcement affects Scierie St-Michel from Monday, August 4, 2025 at the level of the sawing plant and forestry operations, as for the logging plant the suspension of operations will be effective from August 18, 2025.

Currently our industry is being hit by American tariffs. We also mentioned loud and clear that the forest regime in place needs to be modernized because the status quo is no longer possible. The modernization of the regime through Bill 97 is necessary to continue our operations. At present, several stakeholders, on the back of the forestry industry, are trying to achieve the government in place for both their own and external to forestry purposes, which puts the bill in a very bad situation. We must advance forest modernization by achieving two priority targets, including First Nations in modernization to be in line with Bill 97 and creating a favorable business environment for our industry through modernization.

For more than three years, we have been under pressure from First Nations to claim territorial rights. This situation makes harmonization with the community of Manawan impossible without resorting to development agreements that are too costly for our company. It is the responsibility of the government of Quebec to agree with them. The Government of Quebec must also clarify the notion of state property title for industry, because it is made impossible to use our right of forest harvesting and to have planned, efficient and profitable operations through harmonious co-habitation with First Peoples and First Peoples territory users.

Our plants should be able to plan their operations more than three years in advance and currently we are still in a state of emergency because we never know where we will be allowed to carry out forest operations the following month this adds huge pressure to the south of the territory making the situation problematic for our MRCs and all the municipalities.

Today we take this break to ensure the long-term maintenance of our company. When employees return next October, we should have certainty on U.S. compensatory and anti-dumping regulations, on the modernization of the forestry regime with Act 97 including a First Nations regulation on forestry, otherwise this downtime will be extended for an indefinite period.

I thank all stakeholders, suppliers, creditors and employees for their understanding, I hope our message will be listened to as much as the Canadian government and the Quebec government as there are more than 250 jobs affected by this announcement.

Jean-François Champoux

President and Managing Director

Source: Scierie St-Michel Inc.