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NEWSPRINT: A-C SEEKING $50 A TONNE HIKE

MONTREAL, QC — Abitibi-Consolidated Inc., the world’s largest newsprint producer, plans to raise newsprint prices by $50 a tonne, or about 8%, on March 1. Newsprint prices have increased about 18% during the past year to an average of $610 a tonne. “The market has been expecting Abitibi to announce such a price increase,” said Pat Mohr, vice-president, economics, for Scotiabank in Toronto. “Although a lot of capacity has been taken out of Canada and the United States, the first few months of 2001 should see only moderate growth,” Mohr noted. “Advertising in newspapers and other print media will slow down.”