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Abitibi warns of more capacity cuts


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Insolvent newsprint giant AbitibiBowater Inc. says it may be forced to further cut its production capacity this year if market conditions worsen, even as it trimmed losses last year despite lower sales.


“North American newsprint consumption continued to decline in 2009 due to a significant decline in circulation and advertising,” it said.


Global demand for market pulp increased slightly in 2009, despite significant declines in North America and Western Europe, which were partially offset by increased demand from China.


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