Kingsey Falls, Quebec, Canada, 22 February 2012 – Cascades Inc. (TSX:CAS), a leader in the recovery and the manufacturing of green packaging and tissue paper products, continues to consolidate its operations and announces the permanent closure of Cascades Enviropac, located in Toronto.

Production at this unit, specialized in the manufacturing of honeycomb packaging, intended primarily for the furniture packaging industry, will progressively be redirected towards the Cascades Enviropac plants in Berthierville, Québec, Canada, and Grand Rapids, Michigan, USA. Approximately 36 employees will be affected by this closure, which will be effective on 01 June 2012.

"The decision to cease operations at the Toronto plant is due to a significant reduction in business volume. This decision was taken to secure the group's profitability and to improve its position as leader in the industrial packaging sector. Demand in the honeycomb packaging industry has been affected by challenging economic conditions over the past few years and it is imperative we adjust our operations based on this new economic environment. This initiative will enable us to maximize the operations at our mills of Grand Rapids and Berthierville, while continuing to offer a first-class product and service to our customers," said Luc Langevin, president and chief operating officer of Cascades Specialty Products Group.

Cascades has taken the necessary measures to help employees affected by this closure relocate to other manufacturing units and provide them with assistance in their search for work.

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. Cascades Specialty Products Group is a leader in industrial and consumer product packaging, specialty papers, and recovery and recycling. The Group has 50 business units located in North America and Europe and employs more than 2500 people.