<div><p>North American newsprint giant AbitibiBowater said Thursday it was closing several facilities and slashing 1,100 jobs in a bid to cope with tough economic times.</p><p>The Montreal-based paper company said it planned to permanently close its newsprint mill in Grand Falls in the province of Newfoundland and Labrador, and a paper converting facility in Covington, Tennessee in the United States.</p><p>It will also immediately suspend production of its Alabama River newsprint mill, in Alabama, and of two paper machines in Calhoun, Tennessee, resulting in a total production cutback of one million tons.</p><p>The Canadian company said the moves were to address "ongoing volatility in exchange rates, energy and fiber pricing, as well as structural challenges in the North American newsprint industry."</p><p>The North American market continues to contract, AbitibiBowater chief executive officer David Paterson said.</p><p>"International customers have also indicated that export growth will not be as strong in the coming year," he said.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=38142285&bid=informcom" /></div><div id="copyright"><div>

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