AbitibiBowater plans to reopen sawmill in 2014

AbitibiBowater plans to reopen sawmill in 2014MONTREAL -- AbitibiBowater (NYSE: ABH) (TSX: ABH) said it will invest C$32 million to update and upgrade its dormant sawmill in Ignnace, ON,

Plans call for the facility, closed since 2006, to reopen in 2014. The capital investment project will include addition of an energy system and kilns to dry lumber, and a planer and packaging system to allow for the production of finished lumber ready for market.

AbitibiBowater said the investment is contingent on it reaching an "acceptable labor agreement" with the United Steelworkers union and finalizing an agreement on municipal matters with the Township of Ignace.

Richard Garneau, president and CEO of AbitibiBowater, said, "Lumber is and will remain a core business for the company, particularly where it can favorably affect the economics of our pulp and paper facilities. Once the restart and upgrade are completed, Ignace will be well-positioned to supply both the domestic and U.S. markets."


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