Cascades to Close Burnaby, B.C., Containerboard Mill

Cascades Inc., Kingsey Falls, Que., Canada, this week reported that its Norampac division will close its containerboard mill in Burnaby, B.C., Canada. The Burnaby mill has an annual capacity of 128,000 short tons and specializes in the production of 100% recycled linerboard, medium, and gypsum. Nearly 100 employees will be affected by the closure, which will be effective on December 1, at the latest. The mill's production will be redirected progressively towards other Norampac facilities.

"This decision was made to mitigate the negative impact of several factors such as the strength of the Canadian dollar, as well as very high labor and recycled fiber costs. In addition, the mill's profitability has been below our expectations for a few years and we could not pursue our operations under such conditions" said Marc-Andre Dépin, president and CEO of Norampac.

At the same time, Norampac's management also announced that it has reached an agreement with regard to the sale of its Burnaby property.

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