Bowater Inc. announced that its board of directors has opted to spend $80 million to convert around 200,000 metric tons of newsprint production at its Calhoun, Tenn., mill to specialty grades of paper.
The project should be completed by the middle of net year. The announced change reflects the declining demand for newsprint in the North American market. The specialty paper grades that are to be produced at the mill will be geared toward the direct mail and advertising markets.
When the expansion project is complete, the Calhoun site will have an annual production capacity of 465,000 tons of specialty grades of paper and 300,000 tons of newsprint.
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