Cascades to invest in Canadian folding carton plants

6 September 2012 (Last Updated September 6th, 2012 18:30)

Green packaging and tissue products manufacturer Cascades has announced a total investment of $22m in several of its Norampac Division's folding carton and microlithography plants in Canada.

Green packaging and tissue products manufacturer Cascades has announced a total investment of $22m in several of its Norampac Division's folding carton and microlithography plants in Canada.

"Cascades plans to close its Lachute (Québec) folding carton plant by the end of the first quarter of 2013."

The plants in Viau (Montréal, Québec), Mississauga (Ontario), Winnipeg (Manitoba) and Cobourg (Ontario) will benefit from the installation of new equipment that will optimise their production, the company said.

With the latest investment programme, Cascades plans to close its Lachute (Québec) folding carton plant by the end of the first quarter of 2013, and transfer its customers to other Norampac facilities.

An improved synergy will also be created between the microlithography and folding cartons sectors, with the installation of the equipment in the plants, which will allow Norampac to increase its productivity and efficiency.

According to Canada-based Cascades, equipment modernisation will be achieved through the installation of two new printing presses at the Viau and Mississauga plants, which will allow the plants to respond to the growing demand for varied and better quality packaging and printing.

As part of the optimisation project, a new gluer will be installed in Winnipeg plant and forming equipment in Cobourg folding carton plant.

Marc-André Dépin, Norampac president and chief executive officer, said the investments are in accordance with Cascades' strategy that aims to modernise and increase the profitability of its packaging assets.

"Cascades occupies an enviable position in the folding carton market in Canada and these investments will allow us to consolidate and improve upon this position in the coming years," Dépin said.