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Norampac Inc. Suspends Production at its Red Rock Mill
Saint-Bruno, Quebec, Canada, 30 August 2006 -- /PRNewswire/ -- Norampac's management announced today the shutdown of its Red Rock mill, for an indefinite period of time, due to unfavourable economic factors. This mill manufactures virgin linerboard and is located in northwest Ontario.

Nearly 300 employees will be affected by this closure, which will be effective at the latest in 90 days. The Red Rock mill manufactures unbleached kraft linerboard, produceing 300,000 short tons yearly that are sold mostly to Norampac's corrugated products plants. During the shutdown period, several suppliers will insure the supplying of the company's corrugated products plants.

"This decision was taken to mitigate the negative impacts of several economic factors, such as growing fiber supply costs, rising energy costs, and the strengthening of the Canadian dollar. Unfortunately, we do not have any other choice at this point than to suspend the mill's operations," stated Marc-Andre Depin, president and chief executive officer of Norampac.

About Norampac

Norampac owns eight containerboard mills and 26 corrugated products plants in the United States, Canada, and France. With annual production capacity of more than 1.45 million short tons, Norampac is the largest containerboard producer in Canada and the seventh largest in North America. Norampac, which is also a major Canadian manufacturer of corrugated products, is a joint venture company owned by Domtar Inc. (symbol: DTC-TSX, NYSE) and Cascades Inc. (symbol: CAS-TSX).

Source: Norampac, Inc.

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