Cascades to Close Norampac-Trenton Mill in Canada
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Cascades Inc., Kingsey Falls, Que., Canada, has announced the closure of its Norampac containerboard mill in Trenton, Ont., Canada. Following rejection of the final offer made to employees regarding the new collective agreement, closure of the mill will be effective no later than June 1,
Difficult negotiations for the renewal of the collective agreement took place from May 2011 to March 2012 between Norampac's management and the CEP union, following which the two parties were unable to come to an agreement. Marc-André Dépin, president and CEO at Norampac, said that "we are deeply disappointed that the Norampac-Trenton employees have turned down a positive and reasonable offer.
"Despite substantial investments made by Cascades/Norampac to help increase its profitability, the Trenton mill has incurred significant losses over the years. These losses, combined with unacceptable labor relations, have left us with no other choice but to close the mill," Dépin added.
Nearly 130 employees will be affected by the closure. The Norampac-Trenton facility produces corrugating medium and has an annual production capacity of 150,000 metric tons. Its closure will inevitably generate financial losses for the local forest industry, losses that are estimated to $9.5 Million, the Trenton mill being an important customer of local wood suppliers, Cascades noted.
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