MONTREAL (AP) – AbitibiBowater Inc. the third-largest forest products company in North America said Tuesday it will begin a 30-day strategic review of its operations.
The announcement follows the combination of Abitibi-Consolidated Inc. and Bowater Inc. which closed on Oct. 29. Slowing home construction and falling newsprint demand has hit wood and paper companies hard forcing them to try to adapt quickly through consolidation and cost-cutting.
The new company said it targets $250 million in annualized savings by the end of the first quarter of 2009 and $1 billion in reduced debt over the next three years.
"Over the next 30 days AbitibiBowater s executive team will complete a strategic review of each business and develop complete action plans for achieving these business priorities inclusive of sales and marketing plans " the company said.
Shares of AbitibiBowater fell US$1.22 or 4.1 percent to US$28.29 in New York trading.
On the Toronto Stock Exchange they dropped C$1.66 or 6.1 percent to C$25.74.