AbitibiBowater to lay off 150 from Childersburg, Ala. mill
Published: Monday, February 14, 2011, 11:27 AM Updated: Monday, February 14, 2011, 11:30 AM
By Jeff Amy, Press-Register
CHILDERSBURG, Alabama -- AbitibiBowater Inc. said today that it will close its paper and packaging operations at a mill near Childersburg, eliminating about 150 jobs within the next 30 days.
The company had been experimenting with making linerboard on newsprint machines, but said it would have to spend too much money to make relatively low-priced linerboard grades at the Coosa Pines mill.
Montreal-based AbitibiBowater, which also owns a shuttered newsprint mill at Perdue Hill in Monroe County, said it would continue to make fluff pulp at the Talladega County mill.
The company said it would spend $4 million for severance and other closure charges, plus write off $10 million to reflect reducted asset values. AbitibiBowater, North America's largest newsprint producer, recently emerged from bankruptcy.