Cascades Inc. is set to discontinue its activities in the honeycomb paperboard and partition packaging product sectors. As a result, its three plants located in York, PA, and Saint-Césaire and Berthierville, QC, will be closed.
Cascades is committed to optimising its operating platform and business activities by focusing on its strategic markets as a partner of choice for its customers. The plants being closed specialise in niche markets that are no longer aligned with the company’s long-term growth plans.
The closure of the Berthierville honeycomb packaging plant is effective immediately, impacting 52 employees. The company Emballages LM, located in Saint‑François‑de‑la‑Rivière‑du‑Sud, QC, will acquire certain assets for approximately $9m. Emballages LM is a major North American producer of honeycomb paperboard that aims to ensure a smooth transition with customers and maintain service quality.
The York, PA facility will be closed permanently by no later than 19 February. This plant specialises in the manufacturing of honeycomb packaging products, for which declining regional customer demand no longer ensured profitability and 37 employees will be impacted by this closure.
The Saint-Césaire facility specialises in the manufacturing of cardboard partitions for the beverage market. The plant’s profitability has been negatively impacted over several years due to a continuous decrease in market demand. The plant’s geographic distance from its main customers has also reduced its competitiveness. As a result, operations will cease no later than 17 April, impacting 25 employees.
“Focusing Cascades’ assets on its strategic markets is essential to achieving our optimisation and profitability improvement objectives. The markets served by these plants no longer align with the business strategy of our Packaging sector. This refocusing will allow us to invest in strengthening our position as a partner of choice for customers in our priority sectors. I would like to extend a heartfelt thank you to the employees of these three facilities for their dedication and contributions over the years,” said Hugues Simon, President and Chief Executive Officer, Cascades.
These announcements do not affect the activities of the Cascades Sonoco – Berthierville plant, located adjacent to the Berthierville plant.
