Front Porch Blog

Abitibi-Bowater: A Paper Powerhouse

The two outfits plan to merge to form the No. 1 newsprint maker in an effort shave costs
Making paper for the news media has been tough lately. The rise of the Internet has dented demand for newsprint. Rivals in countries like China have rushed into the market with more supply of cheaply-made pulp. But the North American newsprint makers Abitibi-Consolidated (ABY) and Bowater (BOW) are fighting back. They announced an all-stock merger on Jan. 29 in an effort to form a new powerhouse in the industry and save themselves $250 million per year. They’ll own or operate 32 pulp and paper facilities and 35 wood product facilities located mainly in Eastern Canada and the Southeastern U.S. AbitibiBowater will also recycle newspapers and magazines, as it builds on both companies’ efforts to come up environmentally-friendly production methods.

News notes are courtesy of Southern Forests Network News Notes





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