Sep 10, 2007. /Lesprom Network/. Norampac, a division of Cascades Canada Inc announced on September 7, 2007 the signing of a letter of intent for the sale of its Red Rock linerboard mill, located in North West Ontario. Norampac has agreed to pay the purchaser, North American Logistic Services Inc., $10 million, in order to encourage the start-up of a new line of production at the facility. The Red Rock mill was shutdown indefinitely on October 3, 2006, due to unfavourable economic factors. Commenting this transaction, Marc-Andre Depin, president and chief executive officer said "We are pleased to contribute to the economic development of the region, by allowing the start-up of a new business, which should prove favourable for the local economy". The transaction is expected to be concluded by the end of October 2007. Norampac owns seven containerboard mills and twenty-six corrugated products plants in the United States, Canada and France. With an annual production capacity of more than 1.3 million short tonnes, Norampac is the largest containerboard producer in Canada and the seventh largest in North America. Norampac, which is also a major Canadian manufacturer of corrugated products, is a division of Cascades Canada Inc. Founded in 1964, Cascades produces, transforms and markets packaging products, tissue paper and fine papers, composed mainly of recycled fibres. Cascades employs nearly 14 000 men and women who work in more than 100 modern and flexible production units located in North America and Europe. Cascades' management philosophy, its more than 40 years of experience in recycling, its continued efforts in research and development are strengths which enable the company to create new products for its customers. The Cascades shares trade on the Toronto stock exchange.