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Abitibi Power & Paper: The Rise and Fall of a Newsprint Empire

Roberto Bolaño

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Published in Corporate Cataclysm: Abitibi Power Paper And The Collapse Of The Newsprint Industry 1912 1946: Abitibi Power Paper And The Collapse Of The Newsprint 1912 1946 (Themes In Business And Society)

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Corporate Cataclysm: Abitibi Power & Paper and the Collapse of the Newsprint Industry, 1912–1946: Abitibi Power & Paper and the Collapse of the Newsprint ... 1912-1946 (Themes in Business and Society)

5 out of 5

Language	:	English
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Abitibi Power & Paper was once the largest manufacturer of newsprint in the world. Founded in 1912, the company grew rapidly to become a major supplier to newspapers across North America. But by the mid-20th century, the company was in ruins - a victim of technological change, market shifts, and mismanagement.

The rise of Abitibi Power & Paper is a classic story of Canadian capitalism. The company was founded by Frank Harris Anson, a visionary entrepreneur who saw the potential for a newsprint industry in the vast forests of northern Ontario. Anson raised capital from investors in England and the United States, and in 1912 he built a paper mill in Iroquois Falls, Ontario.

The Iroquois Falls mill was a state-of-the-art facility, and Abitibi Power & Paper quickly became a major supplier to newspapers in Canada and the United States. The company's success was due in part to its access to cheap timber and hydroelectric power. Abitibi Power & Paper also benefited from the growing demand for newsprint, as newspapers became more popular and affordable.

In the 1920s and 1930s, Abitibi Power & Paper continued to expand its operations. The company built new mills in Ontario and Quebec, and it acquired existing mills in the United States. By the mid-1930s, Abitibi Power & Paper was the largest manufacturer of newsprint in the world.

However, the company's success was not to last. In the 1940s, the newsprint industry began to face a number of challenges. The rise of television and radio reduced the demand for newspapers. At the same time, new technologies made it possible to produce newsprint from a variety of materials, including recycled paper. These factors led to a decline in the price of newsprint, and Abitibi Power & Paper's profits began to fall.

The company's problems were compounded by mismanagement. In the 1950s and 1960s, Abitibi Power & Paper made a number of poor investment decisions. The company also failed to invest in new technology, and its mills became increasingly inefficient.

In 1970, Abitibi Power & Paper was declared bankrupt. The company's assets were sold off, and its mills were closed. The collapse of Abitibi Power & Paper was a major blow to the Canadian economy. The company had been a major employer in northern Ontario, and its closure led to the loss of thousands of jobs.

The rise and fall of Abitibi Power & Paper is a cautionary tale about the challenges facing the newsprint industry. The industry has been hit hard by technological change and market shifts, and it is unclear whether it will be able to recover.

Despite the challenges facing the newsprint industry, there is still a demand for newsprint. Newspapers remain an important source of information for many people, and they are likely to continue to be published for many years to come.

5 out of 5