Kingsey Falls, Quebec, Canada, 02 April 2009 -- Cascades (CAS at the Toronto stock exchange) announces that Norampac, a division of Cascades Canada Inc., will terminate production activities at its Quebec City-based corrugated products plant, due to significant reduction of business volume and unfavorable economic factors. Nearly 145 employees will be affected by this closure, which will be effective before the end of 2009.
Sales and distribution services at the Quebec plant will remain intact, and production will be redirected progressively towards the other Norampac Quebec-based plants, such as Vaudreuil, Le Gardeur, Victoriaville, Drummondville, and SPB (Montréal) plants, which will ensure the supply to customers with the same quality and service.
“This decision was taken as a result of a significant decline in demand for corrugated products while taking into account the high number of Quebec based plants owned by Norampac” declared Marc-André Dépin, president and chief executive officer of Norampac. “The economic context has forced us to proceed with nearly 1000 temporary or permanent layoffs in our plants and mills in the past year, either by major reorganizations or by plant closures. In these difficult times, Norampac must take all the necessary measures to ensure its durability and unfortunately, this sometimes requires production curtailment such as the one we are announcing for the Quebec plant.”
To help employees affected by this closure, Norampac has prepared a relocation program throughout its other facilities and will offer assistance regarding employment searches.
Founded in 1964, Cascades produces, converts, and markets packaging and tissue products composed mainly of recycled fibers. Cascades employs nearly 13,000 men and women who work in some 100 modern and flexible production units located in North America and in Europe. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.
Norampac owns seven containerboard mills, four boxboard mills, 27 corrugated products plants, and five folding carton plants in the United States, Canada, and France. Norampac is the largest containerboard producer in Canada and the third largest boxboard producer in North America. Norampac, which is also a major Canadian manufacturer of corrugated products and folding cartons, is a division of Cascades Canada Inc. and has more than 5000 employees.