July 26, 2018 – Cascades Inc. has acquired the White Birch Paper Bear Island manufacturing facility in Virginia, for a cash consideration of US$34.2 million. Bear Island’s current newsprint paper machine will be reconfigured by 2021 to produce recycled lightweight linerboard and medium for the North American market. Prior to the conversion, White Birch will temporarily operate the site as a newsprint mill.
Charles Malo, COO of Cascades containerboard packaging, said the Bear Island site is in an ideal location for raw material sourcing and logistics. “[There are] several advantages including access to an experienced workforce with expertise in paper making. Moreover, the site provides a platform for continued growth through downstream converting capacity.”
The new machine is expected to have an annual production capacity of 400,000 U.S. tons. The conversion would require an estimated investment of between US$275 and US$300 million. Plans are to be finalized and approved by the Board of Directors in 2019.
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