Cascades to Close Québec Kraft Paper Mill

Cascades Inc., Kingsey Falls, Qué., Canada, this week announced that it will cease kraft paper production at its East Angus (Québec) plant because of unfavorable market conditions and the failure of discussions concerning the mill's transfer and turnaround. Close to 175 employees will be affected by the closure, which will come into effect by October 3. By closing the plant, Cascades is withdrawing from the kraft paper sector definitively. 

 

"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 COO of Cascades Specialty Products Group. "Last November, we announced to employees our decision to withdraw from the industry. At the time, we offered them the plant debt free. After several months of ongoing efforts on the part of buyer Gino Lévesque, the Québec government and Cascades to come up with a financial package, the project was abandoned because of a lack of new investors. With the failure of the turnaround project and the loss of numerous key employees, today we are forced to announce the end of these activities." 

 

Mario Plourde, president and CEO of Cascades, added that "naturally, we are very disappointed that the project failed. However, we would like to thank the employees' provisional committee, the buyer, and the Government of Québec for the work they put into the project over several months in the attempt to save jobs. Since our strategic orientations are focused on growth in the packaging, tissue paper, and recovery sectors, it became impossible to keep the plant open with its inability to regain profitability. Following today's announcement, Cascades will assume all of the plant's responsibilities, notably the employee pension plan." 

 

To assist the employees affected by the shutdown, Cascades says it will do everything in its power to relocate personnel to other units. It will work with the union and the governments to reduce the impact of the announcement on the workers and the community. 

 

Cascades extends its sincere thanks to the employees of the plant for their loyalty over the years, and says that it hopes it can rely on them to continue to serve its customers until the plant closes. This announcement does not concern the company’s coated boxboard manufacturing plant in East Angus. 

 

Catalyst Paper produces diverse specialty mechanical printing papers, newsprint, and pulp. With three mills in British Columbia, Catalyst has a combined annual production capacity of 1.5 million metric tons.