AbitibiBowater has announced it will indefinitely idle paper machines #4 and #5 at its Thunder Bay, Ont., mill, beginning Aug. 21. The decision puts 360 employees out of work, according to reports in a local newspaper, The Chronicle Journal.
Jean-Phillipe Cote, the company’s director of public affairs and government relations, attributes the closure to erosion of the newsprint market and high operating costs.
As a result of the paper machine shutdown, woodland operations will also decrease fibre production.
According to The Chronicle Journal, Cote said AbitibiBowater is working with the unions on labour cost issues and with the Ontario government to address fibre and input costs in the hope that the company can restart PM5.