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Cascades to Close Folding Carton Plant in Montreal

Dec. 11, 2006 - Cascades Boxboard Group said that it will cease operations permanently at its folding carton converting plant located on Pierre de Coubertin street in Montreal (Québec) by the end of the first quarter of 2007.

The company is planning to gradually transfer its customers and the equipment to other folding carton plants.

The closure will affect about 118 employees.

"Despite significant efforts to reduce costs and improve productivity over the past two years, this decision is unfortunately the solution that is called for in order to cope with the difficult folding carton market conditions in North America," said Éric Laflamme, president and COO of the Boxboard Group, North America.

"The consolidation of our assets will enable us to reduce our operating costs and increase our flexibility and efficiency, while continuing to offer much higher quality products and service to our customers. The transfer of certain equipment will enable us to continue upgrading and computerizing our other plants," Laflamme added.

Cascades said the cost of the closing as well as the transfer of equipment will be financed primarily by the sale of the plant’s property holdings.

SOURCE: Cascades




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