Monday, May 21, 2012

AbitibiBowater mill to shut down for five weeks amid slumping demand for newsprint

BROOKLYN, N.S. — The AbitibiBowater Inc. (TSX:ABH) newsprint mill in Brooklyn, N.S., will be shut down for five weeks, starting just before Christmas, a move that is being blamed on shrinking demand worldwide.
A notice sent to the 300 employees of the Bowater Mersey Paper Company said rising manufacturing costs are also being blamed for the temporary closure, which starts Dec. 21.

Plant manager Bruce Nunn said current global economic conditions are affecting the operation.
Vicki Conrad, the area’s member of the provincial legislature, said the announcement is a clear sign that the recession is having an impact on Nova Scotia’s industries.
“This came as a shock to the workers at Bowater,” the NDP member said in a statement released Monday.
“They expected a shutdown for a week, not five weeks ... The uncertainty will make it a tough Christmas for the more than 350 families affected by the shutdown.”
(CKBW)

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