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Cascades Exits Honeycomb Packaging and Partition Business Segments

honeycomp paperboard packaging Cascades decision to discontinue manufacturing operations associated with honeycomb paperboard and partition packaging product sectors affects three plants — one in the US and two in Canada.

Feb. 6, 2026 - Cascades announced its decision to discontinue manufacturing operations associated with honeycomb paperboard and partition packaging product sectors. As a result, the company's three plants located in York, Pennsylvania, and Saint-Césaire and Berthierville, Quebec (QC), will be closed.

Cascades said the plants being closed specialize in niche markets that are no longer aligned with the company's long-term growth plans.

"Focusing Cascades' assets on its strategic markets is essential to achieving our optimization and profitability improvement objectives," said Hugues Simon, President and CEO of Cascades. "The markets served by these plants no longer align with the business strategy of our Packaging sector."

The closure of the Berthierville honeycomb packaging plant is effective immediately, impacting 52 employees. The company Emballages LM, located in Saint-François-de-la-Rivière-du-Sud, QC, will acquire certain assets [on Feb. 5] for approximately $9 million. Emballages LM is a major North American producer of honeycomb paperboard that aims to ensure a smooth transition with customers and maintain service quality.

The York, Pennsylvania facility will be closed permanently no later than February 19. This plant specializes in the manufacturing of honeycomb packaging products, for which declining regional customer demand no longer ensured profitability. 37 employees will be impacted by this closure.

The Saint-Césaire facility specializes in the manufacturing of cardboard partitions for the beverage market. The plant's profitability has been negatively impacted over several years due to a continuous decrease in market demand. The plant's geographic distance from its main customers has also reduced its competitiveness. As a result, operations will cease no later than April 17, 2026, impacting 25 employees.

These announcements do not affect the activities of the Cascades Sonoco – Berthierville plant, located adjacent to the Berthierville honeycomb packaging plant.

Founded in 1964, Cascades Inc. (TSX: CAS) offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs more than 9,000 people across a network of 60 operating facilities in North America.

SOURCE: Cascades Inc.