Bowater’s Coated Paper Division manufactures high-quality coated groundwood papers used for catalogs, magazines and the growing retail circular market. Our coated paper is produced at our operations at Catawba, South Carolina, and Benton Harbor, Michigan.

We have a dynamic and exciting strategy, centered on our customers’ growing demand for premium papers. Our investment decisions are driven by our desire to continue our leadership position with customers. The newsprint machine at our Catawba, South Carolina, facility will be converted in 2002 to produce higher-value coated paper grades, making the Catawba mill one of the premier modern coated paper facilities in the world. We are adding a second coating line in Benton Harbor, and we have announced that we will be building a new coating plant in the mid-South region and another in the mid-Atlantic region to be completed in 2002.

Execution of our strategy fulfills Bowater’s objective to optimize our product mix and achieve higher margins and superior returns from value-added products. The capital cost per ton of the converted capacity is significantly lower than recent comparable industry acquisitions. When the various projects are completed, Bowater will be among the largest suppliers to the growing coated groundwood papers market in North America.