Kingsey Falls, Quebec based Cascades chose to exit the two niche packaging markets and is “committed to optimizing its operating platform and business activities by focusing on its strategic markets as a partner of choice for its customers,” according to the announcement.
The honeycomb packaging plant in Berthierville that LM Packaging agreed to buy assets from was slated for immediate closure upon the news release, affecting 52 employees. Another honeycomb packaging manufacturing facility in York, Pennsylvania, will close by February 19, affecting 37 employees. Cascades cited declines in regional customer demand “no longer ensured profitability there.” And, the cardboard partition facility in Saint-Césaire, Quebec, will end operations by April 17, impacting 25 employees.
“Focusing Cascades’ assets on its strategic markets is essential to achieving our optimization and profitability improvement objectives,” said President and CEO Hugues Simon in a statement.
Additionally, Cascades announced a $70 per ton price increase for containerboard to take effect March 2, following late January announcements for the same level of increase from Packaging Corporation of America and International Paper to take effect March 1.
