Cascades to Invest $22 Million in Folding Carton, Microlithography Operations

Cascades Inc., Kingsey Falls, Qué., Canada, a producer of packaging and tissue products, reports that it is making major investments in several folding carton and microlithography plants of its Norampac Division. A total investment of $22 million will be used to install new equipment to optimize production and efficiency at the Viau (Montréal, Qué.), Mississauga (Ontartio), Winnipeg (Manitoba), and Cobourg (Ontario) plants.

With this investment program, the Lachute (Québec) folding carton plant will be closed at the latest by the end of the first quarter of 2013, and its customers will be progressively transferred to other Norampac facilities. Nearly 155 employees will be affected by the closure of the Lachute plant. However, approximately 40% of them will have the opportunity to be relocated in other Norampac and Cascades units in Québec.

Cascades notes that the installation of modern and versatile equipment in these plants will lead to an enhanced synergy between the microlithography and folding cartons sectors, which will allow Norampac to increase its productivity and efficiency. Two state of the art printing presses will be installed in the Viau and Mississauga plants. These presses, one which has a printing capability of up to seven colors and an ultraviolet drying process, were designed with the latest technology and are among the best in the industry. The optimization project also includes new equipment in the group's other folding carton plants, including a new gluer in Winnipeg and forming equipment in Cobourg.

"These investments are in line with Cascades' strategy that aims to modernize and improve the profitability of our packaging assets," explained Marc-André Dépin, president and CEO of Norampac. "This is our group's most important investment in the folding cartons sector in several years."

Dépin added that "the folding carton market in Canada continues to be key to our strategy in the packaging sector. This market benefits from stable growth that closely matches that of the consumer market for food products sheltering it from the negative cycles that affect industrial products. Cascades occupies an enviable position in the folding carton market in Canada, and these investments will allow us to consolidate and improve upon this position in the coming years."

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