MONTREAL, QC — Abitibi-Consolidated will cut newsprint and value added production. The company announced plans to close its 50 000 tonne value-added PM 1 at its Wayagamack mill in Trois-Rivires, QC …
MONTREAL, QC — Abitibi-Consolidated will cut newsprint and value added production. The company announced plans to close its 50 000 tonne value-added PM 1 at its Wayagamack mill in Trois-Rivires, QC at the beginning of 2001 and to close its West Tacoma, WA newsprint mill at year end 2000. In a press release president and CEO John Weaver said “We are moving quickly to accomplish all of the objectives announced with the acquisition of Donohue — synergy achievement, low-cost structure and capacity rationalization. The permanent closure of West Tacoma will remove 130 000 tonnes of high cost newsprint capacity, bringing us one-third of the way towards the permanent removal of our stated goal of 400 000 tonne.” West Tacoma represented the company’s highest cost newsprint tonnes, so the transfer of its customers to lower-cost mills will result in improved margins and cash flows for the company as a whole. The company is continuing an active auction for the Wayagamack mill.
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