Fort Frances Mill Survives Restructuring

The previously idled Fort William Mill in Thunder Bay will be permanently shutdown under Abitibi-Bowater’s first phase action plan to remain competitive.
The Mission Island Mill will close for good along with Mills in Shawinigan, Quebec and Dalhousie, New Brunswick.
The Company will also indefinitely idle a Donnacona, Quebec Plant and 3-mills in Mackenzie, British Columbia.
In total, Thursday’s announcement reduces paper production capacity by 1-million metric tones.
2,600 workers are impacted.
The Fort Frances Mill survived the restructuring however company officials note they will be conducting a comprehensive review of all of its assets.
Company officials say over the next 3 years, they hope to reduce their overall debt by $1-billion.
Meantime, a new report says Canada’s paper products industry will likely lose 400-million dollars this year, the third consecutive year the sector has been in the red.
The Conference Board of Canada’s report cites the rising Canadian dollar and increased use of computers and the internet.
But the economic research group says better times are ahead, forecasting a modest profit of about 6-million next year, with profits reaching about 1-billion annually starting in 2010.