Fraser Papers has sold off its New Brunswick paperboard operations to Cascades.
Fraser Papers has sold off its New Brunswick paperboard operations to Cascades.
The company’s facility, located in Edmunston, manufactured roughly 50,000 tonnes of paperboard annually. For $5 million, Cascades bought the operation, and will be relocating the assets to its own facilities.
“This transaction maximizes value for Fraser Papers’ shareholders from a non-core operation where our small market share, structural changes in the industry and challenging competitive environment were impacting our ability to generate sustainable profitability,” said Dominic Gammiero, president and CEO.
Cascades anticipates the transaction will benefit its respective operations as well. Commented Eric Laflamme, president and CEO, “We intend to service Frasers’ customers from our existing facilities, which will enable us to improve our capacity utilization rate at our mills in East Angus and Toronto.”
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