Abitibi-Consolidated plans to permanently remove 180,000 tonnes of newsprint capacity from the North American market from 15 June.


We made a commitment last year to take out 400,000 tonnes of high-cost excess newsprint capacity, and the removal of the 180,000 tonnes completes that commitment, said the manager of public affairs, Denis Leclerc.


The company will also take another 155,000 tonnes of market downtime, which it will spread across its North American mills in May and June.


The group will shut down PM8 and idle PM9 and PM10 at its Kenora, Ontario mill at least until the autumn.


Leclerc said that PM9 would cease newsprint production, and convert to producing value-added high bright quality stock, mainly for inserts.


A total of 147 jobs will be lost at the Kenora mill, with 333 employees being temporarily laid off during the shutdown of the machines.


Abitibi-Consolidated said the move had been forced upon it due to market conditions and high fuel costs at the mill.


Energy costs have increased by 65% on last year, and the impact of the slowdown in the US economy has taken its toll, said Leclerc.


Newsprint consumption in the US has slumped by 9-10% on last year, but a pick-up is expected in the second half of the year.


Story by Andy Scott