KINGSEY
FALLS, QC, Feb. 13, 2024 /CNW/ - Cascades
(TSX: CAS) announces an operational realignment and
optimization of its Containerboard Packaging platform. The
currently idled Trenton
(Ontario) corrugated medium mill
will not restart operations, while the Belleville (Ontario) and Newtown (Connecticut) converting plants will be
permanently closed, in a progressive manner, by May 31, 2024.
Following recent strategic investments in the Bear Island mill and its converting network,
production from these facilities will be moved to other units with
available capacity and more modern equipment.
The annual production capacity of the equipment to be shut down
is 175,000 short tons of corrugated medium and 500 million
square feet of corrugated packaging. Cascades is committed to
maximizing the performance of its assets, and the combination of
the current market environment, higher operating costs, aging
technology and the need for significant capital investment were the
determining factors in the decision to cease operations at the
facilities.
The Company will record $61
million of impairment and environmental obligation charges
associated with these closures in its fourth quarter 2023 financial
results and will incur approximately $35
million of additional restructuring charges in the coming
years.
"I would like to assure our customers that we will work with
them to ensure a smooth transition," said Charles Malo,
President and Chief Operating Officer of Cascades Containerboard
Packaging. "I would also like to sincerely thank the Cascaders
affected by this announcement. We will stand by them through this
process, and we will assist in the relocation of those employees
wishing to continue working for Cascades at one of our other
locations."
Over the coming weeks, Cascades will work closely with the
310 impacted employees to mitigate, where possible, the effect
of this announcement. Employees who cannot or do not wish to
relocate to other plants will receive support in their search for
other employment.
Founded in 1964, Cascades offers sustainable, innovative and
value-added packaging, hygiene and recovery solutions. The Company
employs 10,000 talents across a network close to 75 facilities
in North America. Driven by its
participative management, half a century of experience in
recycling, and continuous research and development efforts,
Cascades continues to provide innovative products that customers
have come to rely on, while contributing to the well-being of
people, communities and the entire planet. Cascades' shares trade
on the Toronto Stock Exchange under the ticker symbol CAS.
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SOURCE Cascades Inc.