KINGSEY FALLS, QC, April 2 /PRNewswire-FirstCall/ - Cascades (CAS at the Toronto stock exchange) announces that Norampac, a division of Cascades Canada Inc., will terminate production activities at its Quebec city based corrugated products plant, due to an important reduction of the business volume and to unfavourable economic factors. Nearly 145 employees will be affected by this closure that will be effective before the end of 2009.
Sales and distribution services at the Quebec plant will remain intact, and production will be redirected progressively towards the other Norampac Quebec based plants, such as Vaudreuil, Le Gardeur, Victoriaville, Drummondville and SPB (Montreal) plants, which will ensure the supply to customers with the same quality and service.
'This decision was taken as a result of a significant decline in demand for corrugated products while taking into account the high number of Quebec based plants owned by Norampac' declared Mr. Marc-Andre Depin, President and Chief Executive Officer of Norampac.
'The economic context has forced us to proceed with nearly 1,000 temporary or permanent layoffs in our plants and mills in the past year, either by major reorganizations or by plant closures. In these difficult times, Norampac must take all the necessary measures to ensure its durability and unfortunately, this sometimes requires production curtailment such as the one we are announcing for the Quebec plant' added Mr. Depin.
In order to help employees affected by this closure, Norampac has prepared a relocation program throughout its other facilities and will offer assistance regarding employment searches.
About Cascades
Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs nearly 13,000 men and women who work in some 100 modern and flexible production units located in North America and in Europe. Cascades' management philosophy, its more than 45 years of experience in recycling, its continuous efforts in research and development are strengths which enable the company to create innovative products for its customers. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.
About Norampac
Norampac owns seven containerboard mills, four boxboard mills, twenty-seven corrugated products plants and five folding carton plants in the United States, Canada and France. Norampac is the largest containerboard producer in Canada and the third largest boxboard producer in North America. Norampac, which is also a major Canadian manufacturer of corrugated products and folding cartons, is a division of Cascades Canada Inc. and has more than 5,000 employees.
SOURCE CASCADES INC.
