Quantcast
Last updated on April 20, 2014 at 5:20 EDT

Cascades Announces Investments of $22 Million in its Folding Carton and Microlithography Operations

September 5, 2012

KINGSEY FALLS, QC, Sept. 5, 2012 /PRNewswire/ – Cascades Inc. (TSX:
CAS), a leader in the recovery and manufacturing of green packaging and
tissue products, announces major investments in several of the folding
carton and microlithography plants of its Norampac Division. Thanks to
a total investment of $22 Million, the Viau (Montréal, Québec),
Mississauga (Ontario), Winnipeg (Manitoba) and Cobourg (Ontario) plants
will benefit from the installation of new modern equipement that will
optimize their production and efficiency.

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. Norampac has taken necessary measures to offer the appropriate
support to the employees that will not be relocated.

Investments
The installation of modern and versatile equipement 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. The modernization of equipement will be achieved
through the installation of two new state of the art printing presses
in the Viau and Mississauga plants. These presses, one of which has a
printing capability of up to 7 colours and an ultraviolet drying
process, were designed to offer the latest technology and are among the
best in the industry. The optimization project also includes the
installation of new equipement in the Group’s other folding carton
plants, namely a new gluer in Winnipeg and forming equipment in
Cobourg. Thanks to its unique characteristics, this new equipment will
allow the plants to better respond to the growing demand for more
varied and better quality packaging and printing.

“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 Chief Executive Officer of
Norampac. “This is our Group’s most important investment in the folding
cartons sector in several years”, added Mr. Dépin.

In closing Mr. Dépin stated “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.”

Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibres. The
Company employs more than 12,000 employees, who work in more than 100
units located in North America and Europe. With its management
philosophy, half a century of experience in recycling, and continuous
efforts in research and development as driving forces, Cascades
continues to serve its clients with innovative products. Cascades’
shares trade on the Toronto Stock Exchange, under the ticker symbol
CAS.

Certain statements in this release, including statements regarding
future results and performance, are forward-looking statements (as such
term is defined under the Private Securities Litigation Reform Act of
1995) based on current expectations. The accuracy of such statements is
subject to a number of risks, uncertainties and assumptions that may
cause actual results to differ materially from those projected,
including, but not limited to, the effect of general economic
conditions, decreases in demand for the Company’s products, increases
in raw material costs, fluctuations in selling prices and adverse
changes in general market and industry conditions and other factors
listed in the Company’s Securities and Exchange Commission filings.

SOURCE CASCADES INC.


Source: PR Newswire