Cascades Provides More Details on New Linerboard Facility in Bear Island, Virginia

 

Cascades (Kingsey Falls, Canada) recycled linerboard production facility is being developed in the existing Bear Island paper mill in Hanover County, Va., USA, and was originally announced in July 2018. The Bear Island paper manufacturing facility was acquired by Cascades from paper production company White Birch Paper for $34.2 million in July. The plant will be temporarily operated by White Birch Paper as a newsprint mill under a 27-month lease period.

It will then be converted into a linerboard plant via the integration of new equipment at an estimated cost of $275-$300 million. The facility’s newsprint paper machine will be reconfigured to produce lightweight recycled and medium linerboard for the North American market.

The project forms part of the company’s strategy to invest in innovative packaging solutions and expand its geographical footprint across the U.S. market.

 

 

 

The Bear Island paper plant is located on a 1,620-acre site at 10026 Old Ridge Road in Hanover County, Virginia. The Bear Island site was selected as an ideal location for Cascades’ recycled linerboard production facility due to the availability of raw materials and logistics within the region.

The 601,000ft² facility will feature a new containerboard machine, which is expected to produce more than 400,000 metric tons of corrugated paper each year. In addition, the plant’s existing newsprint paper machine, which is being well adapted for conversion into the containerboard machine under the initiative, was another reason for choosing the site.

Cascades aims to finalize the plans for the linerboard production facility in 2019 and commence the production of recycled linerboard in 2021. The converted facility will produce two varieties of linerboard, namely kraft linerboard and natural brown or recycled white linerboard. Kraft linerboard products are composed of virgin fiber, while the natural brown linerboard products are made from recycled fiber materials.The linerboards will be available in various thicknesses by basis weights in accordance with the customers’ required surface smoothness and degree of rigidity. The production costs of the corrugated paper manufactured at the converted facility are expected to be calculated on a per-ton basis.

The Government of Virginia has agreed to provide a $1.95 million grant for Cascades’ recycled linerboard production facility via the Commonwealth’s Opportunity Fund. The Virginia Jobs Investment Program (VJIP) will also provide services and funding to support job creation and employee training activities at the site. Cascades is also set to receive Sales and Use tax exemptions for its manufacturing equipment.

The Bear Island Linerboard Production Plant will contribute to Cascades’ future development by offering downstream converting capacity and strengthening the company’s containerboard operations. The project is expected to create up to 140 direct and indirect jobs for locals in Hanover County and the Commonwealth of Virginia, while providing significant tax revenues to Hanover County.