Kingsey Falls, Quebec, Canada, 12 April 2012 -- Cascades Inc. (TSX: CAS), a leader in recovery and in the manufacturing of green packaging and tissue paper products, announces today the closure of its Norampac containerboard mill located in Trenton, Ontario. Following the rejection of the final offer made to the employees regarding the new collective agreement, the closure of the mill will be effective no later than 01 June 2012.
Difficult negotiations for the renewal of the collective agreement took place from May 2011 to March 2012 between Norampac's management and the CEP union, following which the two parties were unable to come to an agreement.
“We are deeply disappointed that the Norampac–Trenton employees have turned down a positive and reasonable offer,” said. Marc-André Dépin, president and chief executive officer at Norampac.
“Despite substantial investments made by Cascades/Norampac to help increase its profitability, the Trenton mill has incurred significant losses over the years. These losses, combined with unacceptable labor relations, have left us with no other choice but to close the mill,” Dépin said.
Nearly 130 employees will be affected by this closure. The Norampac–Trenton facility produces corrugating medium and has an annual production capacity of 150,000 metric tons. Its closure will inevitably generate financial losses for the local forest industry, losses that are estimated to CAD 9.5 million, the Trenton mill being an important customer of local wood suppliers.
Founded in 1964, Cascades produces, converts, and markets packaging and tissue products that are composed mainly of recycled fibers. The corporation employs more than 12,000 men and women, who work in more than 100 units located in North America and Europe. Its management philosophy, its more than 45 years of experience in recycling, and its continued efforts in research and development are strengths that enable Cascades to create new products for its customers. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS. |
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