Canada's most authoritative and exciting grocery b2b publication
Industry NewsCascades announces closure of three plants, impacting 310 employees

Cascades announces closure of three plants, impacting 310 employees

Cascades Inc. has announced it will close three plants, affecting 310 employees, to restructure its containerboard operations, a Canadian Press report reads.

The move reflects the company’s reaction to several issues, such as the market realities, rising operational costs, aging technology, and the need for a significant capital investment.

The impacted facilities include its corrugated medium mill in Trenton, Ont., which remains idle and will not resume operations. Additionally, converting plants in Belleville, Ont., and Newtown, Conn., will close by May 31.

Upon announcing the closures, Cascades reiterated its commitment to supporting affected employees. Those unable or unwilling to relocate to other facilities will be assisted in their quest for alternative employment opportunities, the report reads.

However, the closures will come with a financial impact. Cascades says it will record approximately $61 million in impairment and environmental obligation charges related to these closures in the fourth quarter of its 2023 financial results. Furthermore, it expects an additional $35 million in restructuring charges over the coming years as part of the transition process.

Follow us:

Recent Issues

Related Articles