Kingsey Falls, Quebec, Canada, 02 July 2008 -- /PRNewswire/ -- Cascades announced today a major investment towards the acquisition of a high-tech conversion line for its Lachute tissue paper plant.
Valued at CAD 15 million, including a CAD 3.1 million loan from Investissement Quebec, this project will help preserve the 160 existing jobs and lend added value to the plant. The construction will start in the fall and should be completed before the end of 2008. "The investment that we are announcing today should enable the Tissue Group to increase its converting capacity as well as significantly increase efficiency at the Lachute plant, which will see five converting lines replaced by a single line, whose performance is far superior," stated Alain Lemaire, president and CEO of Cascades.
"This investment will contribute to stepping up the production capacity of the plant, improving product quality and improving competitiveness, which will enable us to better serve our industrial and institutional customers," added Suzanne Blanchet, president and CEO of the Cascades Tissue Group.
In addition to installing this new converting line and auxiliary equipment, the project includes the acquisition of adjacent land, and expansion and modifications to the existing building.
In line with Cascades' commitment to sustainable development principles, the new building will be Leadership in Energy and Environmental Design (LEED) certified. LEED certification recognizes buildings that are of high environmental quality and meet stringent performance standards, notably in terms of energy, water consumption, and use of local materials.
Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibers. Cascades employs nearly 14,000 men and women who work in some 100 modern and flexible production units in North America and in Europe. Cascades' management philosophy, its more than 40 years of experience in recycling, and its continued efforts in research and development are strengths that enable the company to create innovative products for its clients. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.
Cascades Tissue Group is a major tissue paper manufacturer for the commercial, institutional commercial, and giant paper-roll markets. With 14 North-American plants, Cascades Tissue Group offers its clients a wide range of quality products throughout Canada and the United States.
About Cascades Tissue Group - Lachute
In 1995, Cascades acquired the Lachute plant from Perkins. The capacity of its paper machine is 38,000 short tons per year, and nearly 85% of the production is converted internally. The plant also converts 5,000 tons of sanitary tissue each year from other Cascades Tissue Group plants. The Lachute facility serves both the North-American commercial and industrial tissue paper markets.
Source: Cascades Inc.