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MONTREAL - Newspaper producer AbitibiBowater Inc. (TSX:ABH) is preparing to slash jobs at its mill in Grand Falls-Windsor, N.L., as it continues to find ways to make the operations competitive and avoid a series of plant closures that some analysts say are imminent.

Up to 150 of the mill's 450 jobs are expected to be cut as the newspaper giant attempts to reduce what it claims is the industry's highest cost plant in North America.

"It's a solid renewal plan that does come with an important (number) of layoffs," company spokesman Jean-Philippe Cote.

A leaked report of the company's proposal said it will include a complete reorganization of its woodlands division that will result in the loss of 22 jobs.

Control of the division, which includes loggers and harvesters, will be turned over to a general contractor.

Wood will be chipped off-site instead of at the mill and the existing chip room will close, the CBC reported.

Silviculture operations will also be phased out as AbitibiBowater turns to contractors. The manual cut and bunch classification division and the Black Duck Camp will be closed.

Cote declined to confirm the contents of the report, but said the details are just part of a comprehensive plan designed to make the mill profitable again.