Abitibi-Consolidated Selects Head Office Location.MONTREAL--(BUSINESS WIRE)--March 10, 1997--(ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , VSE See DOS/VSE. VSE - Virtual Storage Extended A., NYSE NYSE See: New York Stock Exchange ABY.) (ME;TSE SO;SO.PR.A ) Ron Oberlander, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Abitibi-Price and Jim Doughan, President and CEO of Stone-Consolidated announced to their employees today that the headquarters for the proposed Abitibi-Consolidated will be located in Montreal, Quebec. The merger agreement announced by the two companies on February 14, 1997, called for a head office decision - between Toronto and Montreal - to be made on the basis of objective business and economic factors relevant to the future of Abitibi-Consolidated. Guided by that framework, a committee of six executives undertook a detailed study to choose the ideal home office site for a leading global pulp and paper company. Montreal was selected for the following reasons: - It is the executive centre of the forest products industry in Eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
- Montreal has a critical mass of qualified talent and sectorial expertise in the pulp and paper industry The global pulp and paper industry is dominated by North American (United States, Canada), northern European (Finland, Sweden) and East Asian countries (such as Japan). Australasia and Latin America also have significant pulp and paper industries. , more than any other city in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Universities, research centres, engineering firms and suppliers have developed around this critical mass to support the global growth of the forest products industry. - The cluster effect of the industry in Montreal combined with the closer proximity to all the new company's 24 North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. will ease the realization of identified synergies. - Montreal's bilingual nature provides the multi-cultural platform to meet Abitibi-Consolidated's future growth aspirations. - Operating costs for head offices in Montreal are generally 10% less than Toronto. "Both the Ontario and Quebec governments put forward positive strong cases on behalf of the two cities. Naturally, we are aware of the political sensitivities that attend any head office decision," said Ron Oberlander. "Toronto has many world-class qualities to offer the business community and the Government of Ontario The Government of Ontario refers to the provincial government of the province of Ontario. Its powers and structure are set out in the Constitution Act, 1867. In modern Canadian use, the term "government" refers broadly to the cabinet of the day, elected from the Legislative has made great strides in improving the economic climate in the province. Montreal, however, has an established infrastructure to support an international pulp and paper company, which will speed the achievement of merger synergies, and it meets the objective criteria we set for the site selection process. We believe we made the right decision for the right reasons." "We are convinced that we have arrived at a balanced and informed decision that is in the best long-term interests of our stakeholders," added Jim Doughan. "We know that some people will be very disappointed with our choice. That's unavoidable. However, we are building a new culture for Abitibi-Consolidated. Both organizations have an equally talented group of employees that are essential to our goal of becoming the world's most efficient pulp and paper company. We will do everything possible to accommodate our new colleagues from Toronto and I am confident that the City of Montreal will also put pout the welcome mat." Both companies will decline any further public comment on the head office announcement as they turn their focus to addressing employee issues and moving forward with the necessary details to gain shareholder approval for the merger. Abitibi-Price Inc. a Canadian-based forest products company, manufactures publication papers at ten mills in North America and markets these products to customers around the world. The company is also a major distributor of office products in North America and Western Europe. Stone-Consolidated Corporation, a Canadian-based company, is a leading supplier of publication papers. It also has wood harvesting and sawmill sawmill, installation or facility in which cut logs are sawed into standard-sized boards and timbers. The saws used in such an installation are generally of three types: the circular saw, which consists of a disk with teeth around its edge; the band saw, which operations. The company has production facilities in Canada, the United States and the United Kingdom, with sales offices in Montreal, Greenwich (Connecticut), Chicago, Dallas, Scottsdale (Arizona), London and Brussels and a worldwide network of representative agents. Abitibi-Price Inc. trades in Montreal, Toronto and Vancouver under the symbol A and on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. as ABY. Stone-Consolidated Corporation trades in Montreal and Toronto under the symbol SO. CONTACT: Abitibi-Price Inc. Susan Rogers, 416/ 203-4811 or Corporation Stone-Consolidated Denise Dallaire, 514/ 394-2161 |
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