PaperAge Magazine

Cascades Investing US$58 Million to Modernize Tissue Converting Capacity at Its Wagram, NC Plant

Cascades Wagram tissue converting plant Upon completion of the project, the Wagram plant tissue converting capacity will increase from 5.3 million cases per year to close to 15 million cases per year.

Nov. 27, 2018 - Cascades announced that it will invest US$58 million in its Wagram plant in North Carolina that will modernize the plant and add new tissue converting equipment. These project investments are part of the capital expenditure envelope previously announced by the company.

The Wagram plant produces hand towels, paper towels, bathroom tissue and napkins marketed under the Cascades PRO brand, which serves the Away-from-Home markets. The plant will be largely supplied by the Cascades tissue plant located 30 miles away, in Rockingham.

The project will involve the installation of five new state-of-the-art converting lines and the modernization of four existing lines. Sixty-six full time employees will be hired to operate the new equipment.

The commissioning of the new converting lines is expected to begin in April 2019 and will be finalized in the first quarter of 2020.

Upon completion of the project, the Wagram plant converting capacity will increase from 5.3 million cases per year to close to 15 million cases per year, resulting in a global capacity addition of 3 million cases for the Group.

Mario Plourde, President and CEO of Cascades, said, "This modernization project is directly aligned with the objectives set out in our strategic plan. It will not only allow us to replace ageing equipment with modern and efficient technology, but will also improve our integration rate, increase our geographical footprint and extend our ability to serve our customers in the United States. With today's challenging market conditions, this is a crucial investment that will reduce our manufacturing and transportation costs, improve our environmental footprint and more importantly, bring us closer to our customers."

Cascades noted that this project has been made possible in part by the cooperation and financial support of governments and economic development organizations of North Carolina and Scotland County.

Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. To learn more, please visit: www.cascades.com.

SOURCE: Cascades, Inc.