The first quarter of 2007 will mark the closure of Cascades’ Montreal-based folding carton converting plant.
The first quarter of 2007 will mark the closure of Cascades’ Montreal-based folding carton converting plant.
The company said it plans to gradually transfer its customers and equipment to other folding carton plants. The announcement, which comes just one week after Cascades bought the remaining shares of Norampac in a $560 million deal with Domtar, will allow the company to focus on its packaging business.
Roughly 118 employees will be affected by this move.
“Despite significant efforts to reduce costs and improve productivity over the past two years, this decision is unfortunately the solution that is called for in order to cope with the difficult folding carton market conditions in North America,” said president and CEO ric Laflamme.
“The consolidation of our assets will enable us to reduce our operating costs and increase our flexibility and efficiency, while continuing to offer much higher quality products and service to our customers. The transfer of certain equipment will enable us to continue upgrading and computerizing our other plants,” he added.
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