Cascades Breaks Ground for New Greenpac Mill

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Greenpac will be constructed for a total cost of $430 million and will manufacture a lightweight linerboard, made with 100% recycled fibers, on a single machine having a width of 328 in. (8.33 meters) with a production capacity of 540,000 short tpy. The building and the machinery will be designed for optimal energy efficiency and many operations will be automated. Also, process water will be treated and reused to reduce consumption as much as possible, and a state of the art management system will be used for recycled fibers.

The paper machine will be manufactured by Metso, Finland. Voith, Germany, will provide the stock preparation equipment and anaerobic effluent treatment plant, and Siemens will provide the power and control technology. MiniMill Technologies, Inc. (MMT) has been chosen to support Norampac and its partners in the project management.

"Greenpac is the result of a close collaboration between Norampac and its partners, and its realization symbolizes the beginning of a new era for our company and our industry. Through Greenpac, Norampac will be able to offer high performance and innovative products that will better respond to the growing demand for lightweight packaging," Dépin noted.

Alain Lemaire added that "furthermore, this investment is consistent with our development strategy, which aims at positioning the company among the leaders in terms of productivity and profitability in the packaging and tissue sectors."

Cascades points out that construction of the Greenpac mill has been made possible by financial participation of several organizations in New York State, such as the Empire State Development, the Buffalo Niagara Enterprise, and other local partners, which have established favorable economic conditions for the creation of the new company. Greenpac has been granted $60 million in brownfield tax credits administered by the New York State Department of Taxation and Finance, and $9 million were granted in Empire Zone tax credits. In addition, the New York State Energy Research and Development Authority (NYSERDA) provided a $3.7 million incentive through its Industrial and Process Efficiency Program to purchase and install energy efficient process and support systems. Finally, 10 MW of low-cost power have been granted by New York Power Authority (NYPA).

President, CEO, and Commissioner of Empire State Development Kenneth Adams said that "under the leadership of Governor Cuomo, Empire State Development is working steadfastly to improve New York's business climate, support new investments in our economy and drive private sector job growth. The decision by Norampac to build a new facility in Niagara Falls is just another example that New York is truly 'Open for Business.' I commend the numerous state and local partners who contributed to the advancement of this project, and congratulate Norampac on its continuing success in the region."

Construction will last until 2013 and allow the creation of more than 300 jobs, mostly in the region, between 2011 and 2013. The new mill will have a total surface area of 300,000 sq. ft. and will allow the creation of 108 jobs in New York State at startup, planned for the summer of 2013.

Norampac owns 37 facilities manufacturing and converting corrugated products and folding cartons in North America, including one medium containerboard mill and three corrugated conversion plants in the State of New York.