Cascades Inc. announces the acquisition of the White Birch, Bear Island manufacturing facility in Virginia, for a cash consideration of $34.2 million. The newsprint paper machine presently located on the site will be reconfigured to produce high quality recycled lightweight linerboard and medium for the North American market. During the period prior to the conversion, White Birch will temporarily operate the site as a newsprint mill, under a 27-month lease, as the company says in the press release received by Lesprom Network.
The new machine is expected to have an annual production capacity of 400,000 tons and construction costs on a per ton basis that is competitive with similar conversion projects. As presently contemplated, the conversion would require an estimated investment of between $275 and $300 million , with production expected to begin in 2021. Details of the project will be announced when plans are finalized and approved by the Board of Directors, which is expected in the course of 2019.
With Cascades' continued focus on projects like Bear Island aimed at modernizing production facilities in its core sectors of packaging and tissue, it is expected that capital expenditures in 2019 will remain at a level similar to 2018, subject to Board approval.
Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.
