Paper recycler and waste management firm Abitibi-Consolidated and US paper producer Bowater Incorporated have merged to form AbitibiBowater. Following the merger, AbitibiBowater will own or operate 31 pulp and paper facilities and 35 wood products facilities located in the US, Canada, the UK and South Korea. AbitibiBowater expects to achieve annual synergies of at least $250 million within two years from improved efficiencies in such areas as production, selling, general and administrative costs. Executive chairman John W. Weaver said: By combining Abitibi-Consolidated and Bowater, we have created a global leader that is well positioned to compete in an increasingly challenging global market. We look forward to drawing on the best practices from both organisations and on the strength of a proven management team to deliver greater value to our stockholders, customers, employees and other stakeholders. AbitibiBowater produces a wide range of newsprint and commercial printing papers, market pulp and wood products.