Cascades to Close Leominster, MA Box Plant

March 10, 2011 - Cascades Inc. announces the consolidation of its Norampac's corrugated products operations in the New England region. The restructuring will result in the definitive closure of the Leominster, Massachusetts box plant, and in the expansion of the Thompson, Connecticut plant.

The Leominster plant specializes in the converting of corrugated products. Its production will be redirected progressively towards the Thompson plant and other Norampac facilities in North Eastern US (Schenectady, New York City and Lancaster, NY State).

Nearly 100 employees will be affected by the closure of the Leominster plant, which will be effective at the latest on May 27, 2011.

Approximately 25 new positions will be created at the Thompson facility, and equipment from the Leominster plant will be transferred to Thompson following the closure.

"The decision to close the Leominster plant was a difficult one and follows several years of financial challenges at that location. As we have done in Quebec in 2010, consolidating Norampac's New England operations into the Thompson facility will allow us to better serve our customers, to reduce costs and to improve the profitability in this region" stated Marc-Andre Dépin, President and Chief Executive Officer of Norampac, a Division of Cascades.

In order to help employees affected by the Leominster facility closure, Norampac has prepared a relocation program throughout its other facilities and will offer assistance regarding employment searches.

Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.

SOURCE: Cascades Inc.