Cascades Holds Groundbreaking Ceremony for New Greenpac Containerboard Mill

Breaking Ground. (l-r) Ross Nelson, Containerboard Partners; Paul Dyster, Niagara Falls Mayor; Marc-Andre Depin, Norampac; Sam Hoyt; Joseph Palmeri, Jamestown Container; and Alain Tremblay, Caisse de depot et placement du Quebec.

Sept. 8, 2011 - Cascades and its partners hosted the construction kick off [yesterday] for the new Greenpac Mill LLC (Greenpac) containerboard mill, to be located in Niagara Falls in New York State.

The ground breaking ceremony was held in the presence of Niagara Falls Mayor Paul Dyster, Regional President of the Empire State Development (ESD), Sam Hoyt, Cascades' founders, Bernard, Laurent and Alain Lemaire, Marc-Andre Depin, President and CEO of Norampac, the three other project partners and numerous other guests.

Greenpac is a new corporation created through the efforts of Cascades with the Caisse de depot et placement du Québec, Jamestown Container and Containerboard Partners, for the purpose of building and operating a state-of-the-art containerboard mill. Its creation was also made possible thanks to the leadership of GE Capital, who structured a secured financing in the form of senior debt, through an international banking syndicate, Cascades said.

"Greenpac is the result of a close collaboration between Norampac and its partners, and its realization symbolizes the beginning of a new era for our company and our industry. Through Greenpac, Norampac will be able to offer high performance and innovative products which will better respond to the growing demand for lightweight packaging" declared Marc-Andre Depin.

The Greenpac mill will be constructed for a total cost of US$430 million on a property adjacent to an existing Norampac facility in Niagara Falls, New York.

When operational, the mill will manufacture a light weight linerboard, made with 100% recycled fibers, on a single machine having a width of 328 inches (8.33 meters) with an annual production capacity of 540,000 short tons.

The machine will be one of the largest in North America, Cascades added.

According to Cascades, the building and the machinery will be designed for optimal energy efficiency and many operations will be automated. Also, process water will be treated and reused in order to reduce consumption as much as possible, and the state-of-the-art management system for recycled fibers will have a positive effect on the environmental performance of the mill.

The paper machine will be manufactured by Metso, Voith will provide the stock preparation equipment and anaerobic effluent treatment plant, and Siemens will provide the power and control technology. MiniMill Technologies, Inc. (MMT) has been chosen to support Norampac and its partners in the project management.

The new mill will have a total surface area of 300,000 square feet and will allow the creation of 108 jobs in the New York State at the start-up, planned for the summer of 2013.

Norampac owns 37 facilities manufacturing and converting corrugated products and folding cartons in North America, including one medium containerboard mill and three corrugated conversion plants in the State of New York.

SOURCE: Cascades Inc.