AbitibiBowater Inc., a major recycled paper collector and user, plans to cut paper production by 1.1 million metric tons as the company looks at ways to reduce costs.

The cuts in newsprint and commercial printing papers mean the permanent closure of mills in Shawinigan, Quebec, and Dalhousie, New Brunswick. The company also will indefinitely idle mills in Donnacona, Quebec, and Mackenzie, British Columbia.

Two previously idled mills, in Thunder Bay, Ontario, and Lufkin, Texas, also will be permanently closed.

The company also expects to gain $500 million from the sale of assets, including its 100-percent recycled based Snowflake newsprint mill in Arizona. Money from asset sales will be used to pay down debt. AbitibiBowater also suspended its quarterly dividend as it focuses on reducing debt, the company said.

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