Cascades Inc. recently announced that it will cease its Kraft paper manufacturing activities at the East Angus plant in Quebec because of unfavorable market conditions and the failure of discussions concerning the plant's transfer and turnaround.
"With the arrival of new competitors that convert newsprint paper machines to produce Kraft paper, and the ongoing weakening of market conditions for our products, the East Angus plant has not managed to maintain a competitive edge in the market despite significant investments and serious recovery efforts," explained Luc Langevin, president and chief operating officer of Cascades Specialty Products Group.
By closing the plant, Cascades is withdrawing from the Kraft paper sector definitively. Approximately 175 employees will be affected by the closure, which will go into effect by Oct. 3, 2014.
"Last November, we announced to employees our decision to withdraw from the industry," added Langevin. "At the time, we offered them the plant debt-free. After several months of ongoing efforts on the part of buyer Gino Lévesque, the Quebec government and Cascades to come up with a financial package, the project was abandoned because of a lack of new investors."
To assist the employees affected by the shutdown, Cascades will help relocate personnel to other units. The company will also work with the union and local government to reduce the impact on workers and the community. The announcement does not concern the coated boxboard manufacturing plant located in East Angus.
For more information, visit www.cascades.com.
