MONTREAL -- AbitibiBowater Inc. (TSX:ABH) said it will invest $8 million to expand its sawmill in Thunder Bay, ON.
 
The news came virtually at the same time that Canadian Press the lumber and paper company is looking to layoff up to 10 percent of its workforce.

The upgrade to the sawmill reportedly will increase capacity by 13 percent, from 265 million to 300 million board feet of stud dimension lumber annually. The expansion plans include an additional dry kiln and debarker and a new deplaner. AbitibiBowater said the project will create 50 new jobs at the plant, 150 in its forest operations and 150 other indirect jobs.

While looking to grow its Thunder Bay sawmill operation, AbitibiBowater is also weighing workforce reductions at some of its Canadian mills in an effort to improve its profitability, according to the Canadian Press.

Posted by Rich Christianson