Norampac to Close Le Gardeur Corrugated Converting Plant

Oct. 13, 2011 - Cascades Inc. said that it will continue the consolidation of its Norampac Division's corrugated products converting operations in Quebec, which will result in the closure of the Norampac plant located in Le Gardeur.

The Le Gardeur plant is specialized in the conversion of corrugated products, and has annual revenues of $8 million.

In preparation for this closure, Cascades said the plant's operations will be redirected progressively towards the other Norampac Quebec based plants, that already serve the greater Montreal region.

Nearly 50 employees will be affected by this closure that will be effective before the end of 2011.

"The decision to cease operations at the Le Gardeur plant can be explained by the necessity to continue the consolidation of our Québec operations," said Marc-Andre Depin, President and CEO of Norampac. "In fact, the demand in the Canadian corrugated industry has been affected by unfavorable economic conditions for the past few years and it is imperative that we make the adjustments to take into account this new reality.

"This initiative will therefore allow us to optimize our production in the province, reduce our costs, improve our profitability, while continuing to offer quality services to our customers,” Depin added.

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

SOURCE: Cascades Inc.