Don't assume mill spared from job cuts, Abitibi warns

Paper giant AbitibiBowater says it will not close its newsprint mill in central Newfoundland, but says major changes are looming.

AbitibiBowater was expected to announce a number of layoffs earlier this summer after reviewing the operations at its Grand Falls-Windsor mill.

But Jean-Philippe Cote, the Montreal-based company's director of public affairs and government relations, said the review has been a complex process, and officials need more time.

"The whole exercise was to make sure that the mill would remain open, even though we all know it's going to come with tough and bold measures … because we cannot operate the way it is now," Cote told CBC News.

Those tough and bold measures are coming as soon as next week.

Gary Healey, national representative for the Communications Energy and Paperworkers union, is hoping job losses will be softened if the company announces a major upgrade for the aging mill.

"But we really need significant investment," he said. "That significant investment is anywhere from $60 million to $150 million — just depends on who you're talking to."

However, Cote said the union shouldn't get its hopes up about large sums of money. 

"If you look at the whole industry, it's obvious that even a corporation the size of ours doesn't have the liquidity to deal with such big numbers," said Cote, who refused to give details on how many jobs could be cut.

The scope of downsizing may become more clear on Thursday, when mill manager is expected to address a Grand Falls-Windsor business group.

Like other newsprint producers, AbitibiBowater has been slashing capacity for several years, including a string of mill closures that included its second mill in Newfoundland. The Stephenville mill was idled in 2005.

Last week, AbitibiBowater reported a net loss of $251 million for the second quarter.