AbitibiBowater has completed the sale of three idle paper mills located in eastern Canada to a wholly owned affiliate of American Iron & Metal Company Inc. for $8.7 million and the sale of a paper mill and other assets located in British Columbia to an affiliate of Conifex Inc. for $33.9 million.
The three paper mills sold to American Iron & Metal, together with certain related assets and the property on which these paper mills are located, are located in Beaupré, Que., Donnacona, Que., and Dalhousie, N.B. As part of the sale, AIM has also agreed to acquire a fourth idle paper mill (Fort William), located in Thunder Bay, Ont. In addition, AbitibiBowater will be paid 40% of the net proceeds from any subsequent sale of paper machines from these mills.
The assets sold to Conifex, all located in Mackenzie, B.C., include a paper mill, two sawmills, including planer mills, as well as timberland operations with a forestry license providing an annual allowable cut of approximately 932,500 cubic meters.
AbitibiBowater has streamlined its asset portfolio to focus on top-performing facilities by closing or idling 3.4 million tonnes of paper capacity, moving from an overall production capacity of 10.4 million tonnes to 7 million tons since 2007. During this period, the company has also sold aggregate assets and land for total proceeds of over $980 million.
AbitibiBowater is currently under creditor protection in Canada and the U.S.
Thursday, 10 June 2010 10:00
AbitibiBowater completes sale of for mills, in B.C., Que., N.B.
Ian Melin-Jones
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Canadian News
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