Cascades closes Scierie Lemay for indefinite period
November 13, 2007 By Pulp & Paper Canada
Kingsley Falls, QC — Cascades has announced the shutdown of its operations at the Scierie Lemay mill in Lac-Saint-…
Kingsley Falls, QC — Cascades has announced the shutdown of its operations at the Scierie Lemay mill in Lac-Saint-Jean, QC, for an indefinite period starting on November 30, citing market conditions in the softwood lumber market and profitability issues. Cascades also announced that talks are underway regarding the sale of certain assets of Scierie Lemay to another company in the region, Produits Forestier Arbec s.e.n.c. The planing plant in St-Franois-de-Salles is not targeted by this decision.
Cascades believes that this potential transaction would be the best scenario to ensure a more promising future for the sawmill industry in the Municipality of L’Ascension. Other projects were also considered during the past year, including the re-launching of the mill by the region in partnership with Cascades, but that project was unsuccessful.Cascades acquired 50% of the shares of Scierie Lemay inc. in 1996, and became sole owner in January 2004.
“Cascades and the employees of Scierie Lemay have left no stone unturned in their efforts to make the sawmill profitable,” declared ric Laflamme, President and COO of Cascades Boxboard Group. “Ten million dollars were invested for the construction of a new sawmill and the implementation of an ingenious recovery program for burnt wood residues.Unfortunately, current prices in the sawmill lumber industry and the high cost of raw materials is what is forcing us to shut down the operations in L’Ascension.”
Eighty-three employees will be affected by the shutdown. Management at Cascades have met with Union representatives and plant employees to inform them of the terms of this indefinite shutdown, as well as the measures that will be put in place to lessen the blow that this announcement will have on the employees.
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