March 27, 2019 – Packaging supplier Cascades Inc. has announced that it will close its Lupel plant in Trois‑Rivières, Quebec, with 35 jobs affected.
The plant was used to manufacture felt backing for flooring, and is expected to cease operations on or about July 1, 2019. As a result of this decision, Cascades will be permanently withdrawing from felt production for the floor covering market.
“Despite efforts to increase sales levels at the plant, the drop in popularity of vinyl flooring and the gradual market shift from felt backing toward fibreglass backing has had a serious negative impact on the plant’s operations,” says Luc Langevin, president and chief operating officer of Cascades Specialty Products Group. “Unfortunately, the resulting low production volumes mean that the plant is not profitable, a trend that is not expected to reverse given the market outlook. In these circumstances, we unfortunately have little choice but to announce that the plant will cease operating.”
In the coming weeks, the company will offer staff impacted by the closure the possibility of relocating to its other business units. Employees who do not wish to or are unable to relocate to other plants will receive support in their search for other employment opportunities.
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