Cascades announces an operational realignment and optimization of its Containerboard Packaging platform. The currently idled Trenton corrugated medium mill in Ontario, Canada, will not restart operations, while the Belleville, Ontario, and Newtown, Connecticut, USA, converting plants will be permanently closed, in a progressive manner, by May 31, 2024. Following recent strategic investments in the Bear Island mill and its converting network, production from these facilities will be moved to other units with available capacity and more modern equipment.
The annual production capacity of the equipment to be shut down is 175,000 short tons of corrugated medium and 500 million square feet of corrugated packaging. Cascades is committed to maximizing the performance of its assets, and the combination of the current market environment, higher operating costs, aging technology and the need for significant capital investment were the determining factors in the decision to cease operations at the facilities.
The Company will record $61 million of impairment and environmental obligation charges associated with these closures in its fourth quarter 2023 financial results and will incur approximately $35 million of additional restructuring charges in the coming years.
Over the coming weeks, Cascades will work closely with the 310 impacted employees to mitigate, where possible, the effect of this announcement. Employees who cannot or do not wish to relocate to other plants will receive support in their search for other employment.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions.
