Cascades to Shutter Toronto Honeycomb Packaging Plant
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Cascades Inc., Kingsey Falls Qué., Canada, reported this past week that the company is continuing to consolidate its operations, and at the same time announced the permanent closure of its Enviropac unit, located in Toronto, Ont., Canada. Production at this unit, specialized in the manufacturing of Technicomb honeycomb packaging intended primarily for the furniture packaging industry, will progressively be redirected towards the Cascades Enviropac Berthierville, Qué., and the Grand Rapids, Mich., USA, plants. Approximately 36 employees will be affected by the closure, which becomes effective June 1.
"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 operations at our Grand Rapids and Berthierville, mills while continuing to offer a first-class product and service to our customers," Luc Langevin, president and COO of Cascades Specialty Products Group, said.
Cascades notes that it has taken necessary measures to help employees affected by this closure relocate to other manufacturing units and provide them with assistance in their search for work.
Cascades employs some 11,000 employees who work in more than 100 units in North America and Europe. Cascades Specialty Products Group has 50 business units in North America and Europe and employs more than 2,500 people.
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