Cascades consolidates operations

Cascades Inc., Kingsey Falls, QC, consolidated its Norampac corrugated products operations in New England by closing the Leominster, MA, box plant and expanding the Thompson, CT, plant. Leominster’s corrugated converting is being redirected to Thompson and other Norampac facilities in the region (Schenectady, New York City and Lancaster, NY State). Nearly 100 employees were affected by the closure of the Leominster plant. About 25 new positions were created at Thompson to which equipment from Leominster was transferred.

Cascades also said it will buy the remaining 50% of shares that it does not hold in Papersource Converting Mill Corp. in nearby Granby, QC. The cash purchase price will be about $C60 million and Cascades will assume a debt of about $25 million, for an approximate corresponding company value of $145 million. The transaction needs the approval of Canada’s Competition Bureau. According to Suzanne Blanchet, president and CEO of Cascades Tissue Group: “With sales of more than $C130 million and a consumption of more than 90,000 tons/year, the acquisition of the remaining shares of Papersource will increase the level of integration of Cascades Tissue Group to more than 70% and will thus strengthen its positioning in the Away-from-Home segment in Canada and in the United States.” Papersource converts tissue paper for the Away-from-Home market. It has over 160 employees. PI

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