Green packaging and tissue products recovery and manufacturing firm Cascades has closed the sale of assets related to its Maspeth plant, located in the state of New York, US, for a consideration of $72m.
The company accepted an offer for the building and land surrounding the plant from a private buyer.
Cascades will continue to use the facility until the end of this year, when the plant is scheduled to close, under the arrangement.
Cascades previously revealed its decision to shut down the Maspeth packaging plant in August last year due to the perceived physical limitations of the site.
The decision was taken in line with the company’s on-going modernisation programme, as well as its efforts to optimise operations across the Northeastern US.
Cascades Containerboard Packaging president and chief operating officer Charles Malo said: “The reorganisation of our activities in the region will be done gradually to ensure a smooth transition for our customers, thus continuing to reinforce our commitment and ability to act as a preferred partner in their ongoing development.”
The company noted that the volumes are scheduled to be redeployed to other Cascades units over the course of the year.
Cascades was originally established in 1964 and is primarily engaged in the production, conversion and marketing of packaging and tissue products that are manufactured using recycled fibres.
The organisation operates more than 90 production units across North America and Europe, employing a total of approximately 11,000 workers.