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Cascades strategically restructures its containerboard packaging operations

Cascades has realigned and optimized operations the operations of its Containerboard Packaging platform. The company is not restarting operations of its currently idled Trenton (Ontario) corrugated medium mill. Its Belleville (Ontario) and Newtown (Connecticut) converting plants will be permanently closed, in a progressive manner, by May 31, 2024. The combination of the current market environment, higher operating costs, aging technology and the need for significant capital investment were the determining factors in the decision to cease operations at the facilities.

Cascades explains that following its recent strategic investments in the Bear Island mill and its converting network, production from the closed facilities will be moved to other units with available capacity and more modern equipment.

“I would like to assure our customers that we will work with them to ensure a smooth transition,” said Charles Malo, president and chief operating officer of Cascades Containerboard Packaging. “I would also like to sincerely thank the Cascaders affected by this announcement. We will stand by them through this process, and we will assist in the relocation of those employees wishing to continue working for Cascades at one of our other locations.”

The annual production capacity of the equipment to be shut down is 175,000 short tons of corrugated medium and 500 million square feet of corrugated packaging. Cascades noted in a press statement that it is committed to maximizing the performance of its assets.

The company will record $61 million of impairment and environmental obligation charges associated with these closures in its fourth quarter 2023 financial results and will incur approximately $35 million of additional restructuring charges in the coming years.

Over the coming weeks, Cascades will work closely with the 310 impacted employees to mitigate, where possible, the effect of this announcement. Employees who cannot or do not wish to relocate to other plants will reportedly receive support in their search for other employment.