Cascades to Close Cascades Djupafors Coated Boxboard Mill in Sweden

Print this Article | Send to Colleague

Cascades Inc., Kingsey Falls, Que., Canada, this week announced that, following a consultation process with the unions, it has reached an agreement concerning the closure of its subsidiary, Cascades Djupafors, located in Ronneby, Sweden. Production at the mill will cease on June 30.

Following the closure, a number of customers will be served by the company’s mill in La Rochette, France. Agreements have already been reached with these customers to avoid any disruptions in deliveries.

"Today, it is with regret that we announce this difficult decision, which is the result of weak market conditions. The current economic situation in Europe is forcing us to reorganize our European production activities to compete. I would like to extend my sincere thanks to the employees in Djupafors for their work, and the loyalty they have demonstrated to Cascades over the years. We will be with them throughout this difficult time," said President and CEO, Mario Plourde.

The mill, acquired by Cascades in 1989, has 130 employees and specializes in the production of coated boxboard for folding boxes made from virgin fibers. It has an annual production capacity of 60,000 metric tons.

Back to TAPPI: Over The Wire