AbitibiBowater Plans to Invest in its Iroquois Falls Paper Mill

MONTREAL—August 24, 2011—AbitibiBowater announced a reconfiguration and capital spending program for its paper mill located in Iroquois Falls, Ontario. The investments will improve overall product quality and the mill’s competitive position.

The company will be investing between C$12-$17 million in the thermo-mechanical pulp mill and on paper machine number eight, the larger of the mill’s two machines. The pulp mill investment will result in improved pulp quality with the installation of additional pulp cleaning. Paper machine upgrades will result in improved wet-end formation and newsprint quality. As well, chip receiving and chip handling capabilities will be increased to allow the Iroquois Falls facility to operate on 100 percent externally supplied chips, with the mill’s current woodyard and woodroom being phased out.