Abitibi's Sawmill Closure in Mackenzie Permanent
By 250 News
Friday, November 07, 2008 09:56 AM
Prince George, B.C.- Abitibi Bowater has quietly confirmed the closure of its paper and sawmills in Mackenzie are permanent.
While Abitibi Bowater had indicated it would be interested in selling its paper mill in Mackenzie (as long as the buyer didn’t produce a product that would be in competition with AbitibiBowater’s product line, it has not (until now) said it was not interested in reopening the sawmill operations.
In the company’s recent 3rd quarter results, AbitibiBowater slipped in this line “Included in the charge for closure costs is an impairment charge for the permanent closure in the third quarter of the Donnacona, Quebec and the Mackenzie, British Columbia facilities, which were indefinitely idled during the first quarter of 2008.”
The company’s head of communications, Seth Kursman, says there had to be an “accounting change” for the status of the mills, but that yes, the mills are permanently closed. “We are still open to selling the mills” says Kursman but he will not comment on whether there has been anyone sniffing around or making offers.
When AbitibiBowater announced the indefinite closure of the facilities, there was optimism the sawmills would be resurrected once the current downturn ends.
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