AbitibiBowater is restarting a paper machine in Thunder Bay in January and recalling 170 laid off workers. The machine has been down since August.
The company shut down two machines last summer and laid off 360 workers, citing low market demand.
The Communication, Energy and Paperworkers Union are being credited with making concessions in labour costs. There were other savings in water and electricity use that resulted in $15 million in savings.
The Montreal newsprint maker is restructuring under court protection from creditors granted last April.