Cascades Tissue Group Invests USD 15 Million at its Plant in Memphis

Kingsey Falls, Quebec, Canada, 22 February 2007 -- /PRNewswire/ -- Cascades Tissue Group announces that it will invest USD 15 million at its mill in Memphis, Tennessee, to equip it with a deinking unit. Combining new equipment with other equipment that was acquired in Hagerstown, Maryland, last September, the new deinking line (unit) will be state-of-the-art and will enable the plant to be highly competitive.

The Memphis plant will get its supply of raw materials solely from recycled (sorted office papers (SOP) and will use a chlorine-free bleaching process, thus fulfilling the requirements of the high environmental standards that Cascades Tissue Group has set for itself. This will enable the company to offer tissue paper products that contain 100% recycled post-consumer waste. The Memphis plant, acquired in 2004 from American Tissue, has an annual production capacity of 45,000 metric tons.

In commenting on this investment, Suzanne Blanchet, president and chief executive office of Cascades Tissue Group, stated, "The strategy behind the integration of a deinking unit into our Memphis plant will enhance our competitiveness as a result of a reduction in costs, and will enable us to meet the increasing demand for products that are respectful of the environment."

Founded in 1964, Cascades produces, transforms, and markets packaging products, tissue paper, and fine papers, composed mainly of recycled fibers. Cascades employs nearly 15,500 men and women who work in some 140 modern and flexible production units located in North America, in Europe, and in Asia. 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 new products for its clients and thus offer superior performance to its shareholders. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.

Source: Cascades Inc.