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Cascades Boxboard Group is Consolidating its Folding Carton Converting Activities
Kingsey Falls, Quebec, Canada, 11 December 2006 -- /PRNewswire/ -- Within the framework of the reorganization and the optimization of its folding carton converting activities in Canada, Cascades Boxboard Group is announcing that it will cease operations permanently at its folding carton converting plant located on Pierre de Coubertin Street in Montreal, Quebec, by the end of the first quarter of 2007.

Cascades Boxboard Group is planning to gradually transfer its customers and the equipment to other folding carton plants. This transaction will have no effect on customers. Cascades will continue servicing them from its operations in Quebec, Ontario, Manitoba, and the United States.

Approximately 118 employees will be affected by this closing. Management at Cascades met union representatives and plant employees earlier today to announce the terms of the closure and the measures that will be put in place to lessen the impact of this announcement on employees.

According to Eric Laflamme, president and chief operating officer of the Boxboard Group, North America, "Despite significant efforts to reduce costs and improve productivity over the past two years, this decision is unfortunately the solution that is called for in order to cope with the difficult folding carton market conditions in North America. The consolidation of our assets will enable us to reduce our operating costs and increase our flexibility and efficiency, while continuing to offer much higher quality products and service to our customers. The transfer of certain equipment will enable us to continue upgrading and computerizing our other plants."

The cost of the closing as well as the transfer of equipment will be financed primarily by the sale of the plant's property holdings.

Founded in 1964, Cascades produces, transforms, and markets packaging products, tissue paper, and fine papers, composed mainly of recycled fibers. Cascades employs nearly 14,300 men and women who work in some 120 modern and flexible production units located in North America and in Europe. Cascades' shares trade on the Toronto stock exchange under the ticker symbol CAS.


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