Newsprint Machines Shutting Down

Another blow for the forest industry in northwestern Ontario.

AbitibiBowater says it is shutting down two newsprint machines at its Thunder Bay mill indefinitely, putting 360 employees out of work.

Spokesperson Jean-Phillipe Cote says poor market conditions are being blamed.

"We certainly understand and do regret the impact that this difficult decision will have on those workers, their families and the community," says Cote. "It's a difficult decision, but the context make it that we have no choice but to proceed that way."

Cote say one of the machines may eventually be re-started.

AbitibiBowater is also cutting its head office staff by 25 per cent as part of a plan to trim its overhead expenses by 100-million dollars U-S a year.

Most of the 175 laid off full-time and contractual employees in Canada and the United States will be announced by the end of this month.

The company has about 700 employees working in head office functions, including 400 in Montreal.