Leading Newsprint Manufacturers Merge

january 30, 2007  04:39 pm
Abitibi Consolidated, which hasn't seen a profit in two years, and Bowater, which has been losing money since 2001, announced their marriage yesterday. The new company, AbitibiBowater, faces a U.S. newsprint market that has declined by 26 percent since 1999, according to the New York Times. An industry expert tells The Times that she expects more consolidation in the industry, and she believes that paper mills being built in China might drive down prices in their bid to capture sales in North America.