AbitibiBowater has granted a long awaited decision, and the news is what many in Newfoundland feared: the company i…
AbitibiBowater has granted a long awaited decision, and the news is what many in Newfoundland feared: the company is permanently closing its newsprint mill in Grand Falls-Windsor in the first quarter of 2009. The shutdown will remove 205,000 metric tons of product from the market, and put 450 employees out of work.
The decision comes on the heels of a vote by union members to reject a restructuring plan the company proposed that involved contracting out positions.
In addition to the closure in Newfoundland, the company is closing its paper converting facility in Covington, Tennessee, its Alabama River newsprint mill and two paper machines at its mill in Cohoun, also in Tennessee. AbitibiBowater also confirmed plans to remove a further 20,000 metric tons of newsprint by taking periodic downtime at other, unspecified operations, until market conditions stabilize.
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