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Cascades' Greenpac Breaks Gound for Containerboard Mill in New York
Kingsey Falls, Québec, Canada, 07 September 2011 – Cascades and its partners hosted the construction kick off today for the new Greenpac Mill LLC (Greenpac) containerboard mill, to be located in Niagara Falls, New York, USA. Construction will last until 2013 and allow the creation of more than 300 jobs, mostly in the region, between 2011 and 2013.

The Greenpac mill will be constructed for a total cost of USD 430 million on a property adjacent to an existing Norampac facility in Niagara Falls, New York. Greenpac will manufacture a light weight linerboard, made with 100% recycled fibers, on a single machine having a width of 328 inches (8.33 meters), with an annual production capacity of 540,000 short tons. This machine will be one of the largest in North America.

The building and the machinery will be designed for optimal energy efficiency and many operations will be automated. Process water will be treated and reused to reduce consumption as much as possible, and the state of the art management system for recycled fibres will have a positive effect on the environmental performance of the mill.

Metso will manufacture the paper machine, Voith will provide the stock preparation equipment and anaerobic effluent treatment plant, and Siemens will provide the power and control technology. MiniMill Technologies, Inc. (MMT) has been chosen to support Norampac and its partners in the project management.

The new mill will have a total surface area of 300,000 square feet and will allow the creation of 108 jobs at start-up, which is planned for the summer of 2013.
Greenpac is a new corporation created through the efforts of Cascades with the Caisse de dépôt et placement du Québec, Jamestown Container and Containerboard Partners, for the purpose of building and operating a state of the art containerboard mill, one of its kind in North America. Its creation was also made possible thanks to the leadership of GE Capital, who structured a secured financing in the form of senior debt, through an international banking syndicate.

“Greenpac is the result of a close collaboration between Norampac and its partners, and its realization symbolizes the beginning of a new era for our company and our industry. Through Greenpac, Norampac will be able to offer high performance and innovative products which will better respond to the growing demand for lightweight packaging,” said Marc-André Dépin, president and chief executive officer at Norampac.

Construction of the Greenpac mill in Niagara Falls has been made possible thanks to the financial participation of several organizations in New York State, such as the Empire State Development, the Buffalo Niagara Enterprise, and other local partners, which have established favorable economic conditions for the creation of the new company. Greenpac has been granted USD 60 million in brownfield tax credits administered by the New York State Department of Taxation and Finance, and USD 9 million were granted in Empire Zone tax credits. In addition, the New York State Energy Research and Development Authority (NYSERDA) provided a USD 3.7 million incentive through its Industrial and Process Efficiency Program to purchase and install energy efficient process and support systems. Finally, 10 megawatts of low-cost power have been granted by New York Power Authority (NYPA).Norampac owns 37 facilities manufacturing and converting corrugated products and folding cartons in North America, including one medium containerboard mill and three corrugated conversion plants in New York.Founded in 1964, Cascades produces, converts, and markets packaging and tissue products that are composed mainly of recycled fibers. The company employs close to 11,000 employees, who work in more than 100 units located in North America and Europe. Its management philosophy, its more than 45 years of experience in recycling, and its continued efforts in research and development are strengths that enable Cascades to create new products for its customers. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.

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