Cascades to Initiate Modernization Program Within Norampac, Will Close LaChute Folding Carton Plant

Sept. 6, 2012 - Cascades said that it will make major investments totalling $22 million to upgrade several of the folding carton and microlithography plants of its Norampac Division.

Viau (Montreal, Quebec), Mississauga (Ontario), Winnipeg (Manitoba) and Cobourg (Ontario) plants will benefit from the installation of new modern equipement that will optimize production and efficiency, Cascades said.

As a result of the modernization plan, the Lachute (Quebec) folding carton plant will be closed at the latest by the end of the first quarter of 2013, and its customers will be progressively transferred to other Norampac facilities, Cascades said.

Nearly 155 employees will be affected by the closure of the Lachute plant, however about 40% of the workers will have the opportunity to be relocated within other Norampac and Cascades units in Quebec, the company said.

Norampac has taken necessary measures to offer the appropriate support to the employees that will not be relocated, Cascades added.

According to Cascades, the modernization of equipement will be achieved through the installation of two new state of the art printing presses in the Viau and Mississauga plants. The presses — one of which has a printing capability of up to 7 colors and an ultraviolet drying process — were designed to offer the latest technology and are among the best in the industry.

The optimization project also includes the installation of new equipement in the Group's other folding carton plants, namely a new gluer in Winnipeg and forming equipment in Cobourg.

"These investments are in line with Cascades' strategy that aims to modernize and improve the profitability of our packaging assets," said Marc-Andre Depin, President and Chief Executive Officer of Norampac. "This is our Group's most important investment in the folding cartons sector in several years.

"The folding carton market in Canada continues to be key to our strategy in the packaging sector. This market benefits from stable growth that closely matches that of the consumer market for food products sheltering it from the negative cycles that affect industrial products. Cascades occupies an enviable position in the folding carton market in Canada and these investments will allow us to consolidate and improve upon this position in the coming years," Depin added.

SOURCE: Cascades Inc