Abitibi-Consolidated
Encyclopedia
Abitibi Consolidated Inc. was a Canadian pulp and paper company
based in Montreal, Quebec. Abitibi-Consolidated was formed from the merger of Abitibi-Price Inc. and Stone Consolidated Corp. on 29 May 1997; the Company merged with Bowater
in 2007 to form AbitibiBowater
.
, the United States and the United Kingdom
, supplied publishers, printers, building products distributors and housing manufacturers in over 70 countries. It had approximately 12,500 employees.
A global leader in newsprint
, commercial printing papers and wood products, the Company saw combined revenues of $4.85 billion in 2006. Number one in Canada in terms of total certified woodlands, Abitibi-Consolidated was also one of the largest recyclers of newspaper
s and magazine
s, serving 21 metropolitan areas in North America
and the United Kingdom.
In addition, the Company had significant hydroelectric generating assets in eastern Canada, which provided a cost advantage for the associated production facilities and was an extension into the energy sector.
on the Abitibi River
by Frank Harris Anson. The following February, the company name was changed to Abitibi Power and Paper Co. Ltd. to reflect the power generation business it created through the need to build a dam
to generate electricity for its mill. The company expanded to other locations in Ontario where it also built dams http://www.archives.gov.on.ca/ENGLISH/exhibits/paper/big/big_06_abitibi_dam.htm and operated hydro electric power stations. Wherever the company built a mill, a new town sprang up around it and it even built radio stations such as CFCH in Iroquois Falls to serve these remote new communities. The company acquired other small lumber operations and grew to become a major force in the North America
n newsprint business but the Great Depression
forced the company to file for bankruptcy protection on September 10, 1932. It remained under the control of the Court-appointed Receiver until 1946, the longest such receivership in Canadian history. Emerging from bankruptcy, the company prospered in the post-World War II
industrial boom and in 1965 changed its name to the Abitibi Paper Company Ltd. In 1974, Abitibi purchased a controlling interest in the Price Brothers & Company Limited which had extensive operations in the Province of Quebec and whose vast forestry business dated back to the William Price Company established in Montreal in 1820. The merger of Abitibi and the Price Brothers made it the world's biggest newsprint producer. In 1979, the corporate name was changed to Abitibi-Price Inc. and in 1981 it was taken over by Olympia and York Developments Ltd
. The collapse of Olympia and York in 1992 resulted in the consortium of banks being forced to take control of Abitibi-Price Inc. for a short time until they sold it through a public share issue
in 1994.
in 1914. Majority control of the company was obtained in the late 1930s by Arthur J. Nesbitt
and his partner Peter A. T. Thomson through their holding company
, Power Corporation of Canada
. In the early 1960s, Power Corporation bought the Consolidated Paper Company. When Paul Desmarais
acquired control of Power Corporation in 1968, the two companies were merged to become Consolidated-Bathurst Inc. In 1989, the company was sold to Stone Container Corporation of Chicago, Illinois who renamed it Stone Consolidated Inc.
and Abitibi-Consolidated announced they would be merging to create AbitibiBowater
. The merger created the third largest pulp and paper company in North America, and the eighth largest in the world. Following the merger, Abitibi-Consolidated was rated B1, B+ and B+ by Moody's
, Standard & Poor's
and Fitch Ratings respectively.
Pulp and paper industry in Canada
The pulp and paper industry in Canada is one of the country's most important and profitable industries. It is especially concentrated in Ontario and Quebec but plays an important role in many other provinces.- Leading companies :...
based in Montreal, Quebec. Abitibi-Consolidated was formed from the merger of Abitibi-Price Inc. and Stone Consolidated Corp. on 29 May 1997; the Company merged with Bowater
Bowater
Bowater was an American pulp and paper company based in Greenville, South Carolina. Bowater had 12 pulp and paper mills in the United States, Canada and South Korea and 13 North American sawmills. It had approximately 10,000 employees...
in 2007 to form AbitibiBowater
AbitibiBowater
Resolute Forest Products , formerly known as AbitibiBowater Inc. is a pulp and paper manufacturer headquartered in Montreal, Quebec, Canada, formed by the merger of Bowater and Abitibi-Consolidated, which was announced 29 January 2007...
.
Operations
A network of 19 paper mills, 20 sawmills, 4 remanufacturing facilities and 2 engineered wood facilities, located in CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, the United States and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, supplied publishers, printers, building products distributors and housing manufacturers in over 70 countries. It had approximately 12,500 employees.
A global leader in newsprint
Newsprint
Newsprint is a low-cost, non-archival paper most commonly used to print newspapers, and other publications and advertising material. It usually has an off-white cast and distinctive feel. It is designed for use in printing presses that employ a long web of paper rather than individual sheets of...
, commercial printing papers and wood products, the Company saw combined revenues of $4.85 billion in 2006. Number one in Canada in terms of total certified woodlands, Abitibi-Consolidated was also one of the largest recyclers of newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s and magazine
Magazine
Magazines, periodicals, glossies or serials are publications, generally published on a regular schedule, containing a variety of articles. They are generally financed by advertising, by a purchase price, by pre-paid magazine subscriptions, or all three...
s, serving 21 metropolitan areas in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
and the United Kingdom.
In addition, the Company had significant hydroelectric generating assets in eastern Canada, which provided a cost advantage for the associated production facilities and was an extension into the energy sector.
Abitibi
Abitibi Pulp and Paper Co. Ltd. was founded in 1912 at Iroquois Falls, OntarioIroquois Falls, Ontario
Iroquois Falls is a small town in Northern Ontario, Canada, with a population of 4,729 in the Canada 2006 Census.The town centre lies just off of Hwy 11 on the banks the Abitibi River, west of Lake Abitibi. Timmins, one of the largest cities in northern Ontario is approximately to the west...
on the Abitibi River
Abitibi River
The Abitibi River is a river in northeastern Ontario, Canada, which flows northwest from Lake Abitibi to join the Moose River which empties into James Bay. This river is long.The river was an important fur trading route for the Hudson's Bay Company...
by Frank Harris Anson. The following February, the company name was changed to Abitibi Power and Paper Co. Ltd. to reflect the power generation business it created through the need to build a dam
Dam
A dam is a barrier that impounds water or underground streams. Dams generally serve the primary purpose of retaining water, while other structures such as floodgates or levees are used to manage or prevent water flow into specific land regions. Hydropower and pumped-storage hydroelectricity are...
to generate electricity for its mill. The company expanded to other locations in Ontario where it also built dams http://www.archives.gov.on.ca/ENGLISH/exhibits/paper/big/big_06_abitibi_dam.htm and operated hydro electric power stations. Wherever the company built a mill, a new town sprang up around it and it even built radio stations such as CFCH in Iroquois Falls to serve these remote new communities. The company acquired other small lumber operations and grew to become a major force in the North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
n newsprint business but the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
forced the company to file for bankruptcy protection on September 10, 1932. It remained under the control of the Court-appointed Receiver until 1946, the longest such receivership in Canadian history. Emerging from bankruptcy, the company prospered in the post-World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
industrial boom and in 1965 changed its name to the Abitibi Paper Company Ltd. In 1974, Abitibi purchased a controlling interest in the Price Brothers & Company Limited which had extensive operations in the Province of Quebec and whose vast forestry business dated back to the William Price Company established in Montreal in 1820. The merger of Abitibi and the Price Brothers made it the world's biggest newsprint producer. In 1979, the corporate name was changed to Abitibi-Price Inc. and in 1981 it was taken over by Olympia and York Developments Ltd
Olympia and York
Olympia & York was once a major international property development firm based in Canada. The firm built major financial office complexes like Canary Wharf in London, the World Financial Center in New York City and First Canadian Place in Toronto...
. The collapse of Olympia and York in 1992 resulted in the consortium of banks being forced to take control of Abitibi-Price Inc. for a short time until they sold it through a public share issue
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
in 1994.
Consolidated
The Bathurst Power and Paper Company Ltd. built a mill in Bathurst, New BrunswickBathurst, New Brunswick
Bathurst is a Canadian city in Gloucester County, New Brunswick.Bathurst is situated on Bathurst Harbour, an estuary at the mouth of the Nepisiguit River at the southernmost part of Chaleur Bay....
in 1914. Majority control of the company was obtained in the late 1930s by Arthur J. Nesbitt
Arthur James Nesbitt
Arthur James Nesbitt was a Canadian businessman and philanthropist who was a cofounder of Nesbitt, Thomson and Company stockbrokerage and the Power Corporation of Canada....
and his partner Peter A. T. Thomson through their holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, Power Corporation of Canada
Power Corporation of Canada
Power Corporation of Canada is a Canadian company with assets in North America and Europe in a number of industries. These industries include media, pulp and paper, and financial services....
. In the early 1960s, Power Corporation bought the Consolidated Paper Company. When Paul Desmarais
Paul Desmarais
Paul Desmarais, Sr., is a Canadian financier in Montreal. With an estimated net worth of $US 4.5 billion , Desmarais was ranked by Forbes as the 4th wealthiest person in Canada and 235th in the world.Desmarais also owns homes in Palm Beach, Florida and New York.He is CEO of the Power Corporation...
acquired control of Power Corporation in 1968, the two companies were merged to become Consolidated-Bathurst Inc. In 1989, the company was sold to Stone Container Corporation of Chicago, Illinois who renamed it Stone Consolidated Inc.
Acquisitions
In 2000, Abitibi-Consolidated acquired a majority shareholding in Canadian integrated forest products company Donohue Inc.Merger with Bowater
On 29 January 2007, BowaterBowater
Bowater was an American pulp and paper company based in Greenville, South Carolina. Bowater had 12 pulp and paper mills in the United States, Canada and South Korea and 13 North American sawmills. It had approximately 10,000 employees...
and Abitibi-Consolidated announced they would be merging to create AbitibiBowater
AbitibiBowater
Resolute Forest Products , formerly known as AbitibiBowater Inc. is a pulp and paper manufacturer headquartered in Montreal, Quebec, Canada, formed by the merger of Bowater and Abitibi-Consolidated, which was announced 29 January 2007...
. The merger created the third largest pulp and paper company in North America, and the eighth largest in the world. Following the merger, Abitibi-Consolidated was rated B1, B+ and B+ by Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
, Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
and Fitch Ratings respectively.