Cascades to shut Norampac converting division

Canadian packaging maker Cascades will continue to consolidate its Norampac Division's corrugated products converting operations in Québec, resulting in the closure of the Norampac plant located in Le Gardeur, Quebec, Canada.

The plant, which converts corrugated products and generates annual revenues of $8m, will redirect its operations towards the other Norampac Québec-based plants.

Norampac president and CEO Marc-André Dépin said the initiative will allow the company to optimise the production in the province, reduce costs and improve profitability.

"Demand in the Canadian corrugated industry has been affected by unfavorable economic conditions for the past few years. It is imperative that we make adjustments to take into account this new reality," Dépin added.

Last month, Cascades said its Norampac division will sell an underperforming containerboard mill in Burnaby, British Colombia, to counter rising labour and fibre costs.