AbitibiBowater head offices are seen in Montreal Thursday, April 16, 2009. THE CANADIAN PRESS/Ryan Remiorz

MONTREAL - Cash-strapped AbitibiBowater, one of the world's largest newsprint producers, will save nearly $2.3 million annually after a judge approved the sale of a former Quebec pulp and paper mill.

The insolvent newsprint giant, under court-protection from creditors since April, has sold its Belgo plant in Shawinigan, Que., to Recyclabe Arctic Beluga Inc.

The purchase price was undisclosed because AbitibiBowater and its Canadian subsidiary Abitibi-Consolidated are selling other assets in its restructuring under bankruptcy protection, said the judge's court order.

Abitibi received four offers for the vacant building. The recycling company's bid was deemed the most interesting financially and because it will create an undisclosed number of jobs from the partial use of the building.

The Belgo plant stopped production in February 2008.

AbitibiBowater, formed from the 2007 merger of Canadian and U.S. newsprint companies, produces newsprint, commercial printing papers, market pulp and wood products.

The company operates 23 pulp and paper mills and 30 wood products operations in the United States, Canada, the United Kingdom and South Korea.