Cascades Announces Mill Investment Plans
Kingsey Falls, Québec, Canada, 12 January 2009 – Cascades Inc. (CAS - Toronto Stock Exchange) is pleased to announce a first investment of CAD 5 million at its Norampac plant in Kingsey Falls, which aims to streamline this unit that manufactures linerboard made from 100% recycled fibers. The current project consists of expanding the building to replace the winder and create additional space for future investments.
Since its inception in 1964, while its production totaled 10,000 metric tons per year, the plant, formerly called Division Papier, has invested CAD 55 million in total to increase its annual production capacity to 90,000 metric tons. At the end of this current project, whose subsequent phases are intended for 2010 and 2011, production capacity at the plant will be greater than 125,000 metric tons per year.
In 2008, more than CAD 12 million was invested in the seven production units in Kingsey Falls alone. In Québec, Cascades invested more than CAD 50 million last year and approximately CAD 175 million was allocated for fixed capital costs for the entire organization worldwide. In 2009, depending on the status of the global economic situation and its financial performance, Cascades intends to invest approximately CAD 100 million in capital costs.
Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs nearly 14,000 men and women who work in some 100 modern and flexible production units located in North America and in Europe. Cascades' management philosophy, its 45 years of experience in recycling, and its continuous efforts in research and development are strengths that enable the company to create innovative products for its customers. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.