Norampac to Close Burnaby Containerboard Mill by Dec. 1

Spet. 20, 2011 - Cascades today said that its Norampac division will close its containerboard mill located in Burnaby, British Columbia, Canada.

The Burnaby mill has an annual capacity of 128,000 short tons and specializes in the production of 100% recycled linerboard, medium and gypsum.

Nearly 100 employees will be affected by the closure, which will be effective on December 1, 2011 at the latest.

The mill's production will be redirected progressively towards other Norampac facilities, Cascades said.

"This decision was made to mitigate the negative impact of several factors such as the strength of the Canadian dollar, as well as very high labor and recycled fiber costs," said Marc-Andre Depin, president and CEO of Norampac.

"In addition, the mill's profitability has been below our expectations for a few years and we could not pursue our operations under such conditions, Depin explained.

Norampac's management also announced that it has reached an agreement with regard to the sale of its Burnaby property, but did provide specifc details.

SOURCE: Cascades