Results are in: ABC to shut down machine
April 28, 2005 By Pulp & Paper Canada
After much deliberation, Abitibi-Consolidated is shutting down one of its two papermaking machines at Grand Falls-W…
After much deliberation, Abitibi-Consolidated is shutting down one of its two papermaking machines at Grand Falls-Windsor, NF. The company has been in the process of conducting a cost-cutting review, in order to determine which of its operations are viable. Abitibi has said it will start consolidating its operations and cutting jobs in the province, a strategy that will pave the way for the shutting down of its 60,000 tonne PM7.
The move won’t come without a cost, however. The provincial government responded to the announcement with retaliatory force, indicating that if the company pushes ahead with the scheduled shutdown, it will lose the timber licenses associated with that operation.
The announcement came on the heels of the company’s Q1 posting, which boasted a $51 million loss. To push down costs even further, Abitibi is gearing up to sell its 150,000 tonne uncoated groundwood paper mill in Thunder Bay, ON.
The future of the Stephenville mill is also uncertain, and is largely dependent on the outcome of talks with the provincial government concerning energy sources. A final decision is expected in July. Meanwhile, the company hopes to secure lower energy costs with the Ontario government for its mill in Kenora, ON, whose future is also looking uncertain. A decision regarding the mill’s status is expected to be made public in June.
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