Cascades to permanently close Ontario mill

Cascades has announced its currently idled Trenton, Ontario, corrugated medium board mill will not restart operations, and also will permanently close its downstream converting plants in Belleville, Ontario, and Newtown, Connecticut.

“Following recent strategic investments in the Bear Island [Virginia] mill and its converting network, production from these facilities will be moved to other units with available capacity and more modern equipment,” Cascades says.

The Kingsey Falls, Quebec-based company says the three facilities to be permanently closed will be phased out in a progressive manner by May 31.

The annual production capacity of the equipment to be shut down is 175,000 short tons of corrugated medium and 500 million square feet of corrugated packaging.

Cascades says it is committed to "maximizing the performance of its assets," and the combination of the current market environment, higher operating costs, aging technology and the need for significant capital investment were the determining factors in the decision to cease operations at the facilities.

The company will record $61 million of impairment and environmental obligation charges associated with the closures in its fourth quarter 2023 financial results and will incur approximately $35 million of additional restructuring charges on future balance sheets.

“I would like to assure our customers that we will work with them to ensure a smooth transition,” says Charles Malo, president and chief operating officer of Cascades Containerboard Packaging. “I would also like to sincerely thank the Cascaders affected by this announcement. We will stand by them through this process, and we will assist in the relocation of those employees wishing to continue working for Cascades at one of our other locations.”

More than 300 employees will be affected by the closures, and Cascades says it will work with them “to mitigate, where possible, the effect of this announcement.”

Founded in 1964, Cascades employs about 10,000 people at some 75 facilities in North America. The company offers sustainable, innovative and value-added packaging, hygiene and recycling products and services.