Other U.S. plants will be affected.
Montreal-based AbitibiBowater said it planned to permanently close its paper converting facility in Covington, Tenn., and newsprint mill in Grand Falls, Newfoundland and Labrador. The company will also suspend production of its Alabama newsprint mill and at two paper machines in Calhoun, Tenn., resulting in a total production cutback of 1 million tons.
The movies means the company will eliminate about 1,100 jobs.
The moves were to address “ongoing volatility in exchange rates, energy and fiber pricing, as well as structural challenges in the North American newsprint industry,” according to the company.
“The North American newsprint market continues to contract, and our customers have told us they anticipate further decline,” said David J. Paterson, president and CEO of AbitibiBowater. “International customers have also indicated that export growth will not be as strong in the coming year. We have the resolve to adapt to these realities and to set the stage for continued quarter-over-quarter improvements.”
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