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Norampac to Shut Corrugated Plant in Quebec

April 2, 2009 - Canadian packaging maker Norampac said that it will cease production at its Quebec City-based corrugated products plant. About 145 employees will be impacted by the plant's closure.

The closure, which will take place before the end of 2009, is the result of a substantial reduction in business volume and unfavorable economic factors, the company said.

"This decision was taken as a result of a significant decline in demand for corrugated products while taking into account the high number of Quebec based plants owned by Norampac" stated Marc-Andre Depin, president and CEO of Norampac.

"The economic context has forced us to proceed with nearly 1,000 temporary or permanent layoffs in our plants and mills in the past year, either by major reorganizations or by plant closures. In these difficult times, Norampac must take all the necessary measures to ensure its durability and unfortunately, this sometimes requires production curtailment such as the one we are announcing for the Quebec plant," Depin added.

Sales and distribution services at the Quebec plant will remain intact, and production will be redirected progressively towards the other Norampac Quebec based plants, such as Vaudreuil, Le Gardeur, Victoriaville, Drummondville and SPB (Montreal) plants, the company said.

Norampac said it has prepared a relocation program throughout its other facilities and will offer assistance to help employees affected by this closure.

Norampac owns seven containerboard mills, four boxboard mills, twenty-seven corrugated products plants and five folding carton plants in the United States, Canada and France. Norampac is the largest containerboard producer in Canada and the third largest boxboard producer in North America. Norampac, which is also a major Canadian manufacturer of corrugated products and folding cartons, is a division of Cascades Canada Inc. and has more than 5,000 employees.

SOURCE: Cascades




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