Sheldon Mill Closure: From ESA to NFA, 2007 Engineering, Pulping & Environmental Conference

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Over the past five years, Abitibi-Consolidated Inc. (“Abitibi” or “the Company”), a major producer of newsprint and commercial printing papers, has been facing significant market related challenges, most notably, the decline of North American newsprint demand. In response to these challenges, the Company has converted assets to produce other products, worked diligently to lower its cost structure, expanded its efforts in the international marketplace and in some cases, permanently closed newsprint manufacturing assets both in the US (West Tacoma, Washington and Sheldon, Texas) and Canada (Port Alfred, Quebec; Kenora, Ontario and Stephenville, Newfoundland). With experience, the Company has developed a generic but flexible management plan to take these facilities from closure to either a “Greenfield site” or to other uses that support its commitment to sustainability efforts. The Company has efficiently integrated environmental, operational, legal and logistical aspects of such undertakings. This presentation describes the successful risk-based environmental assessment and disclosure process that specifically supported the divestiture of the Sheldon, Texas, paper mill. A comprehensive assessment approach and an open collaboration with State of Texas authorities and the buyer of the site were used to effectively define and disclose environmental conditions and liabilities. The proactive and open approach established credibility and good faith with all parties and resulted in rapid and efficient negotiation with the buyer and support from the buyer’s financial partners and insurers.