“With the arrival of new competitors that convert newsprint paper machines to produce kraft paper and the ongoing weakening of market conditions for our products, the East Angus plant has not managed to maintain a competitive edge in the market, despite significant investments and serious recovery efforts,” says Luc Langevin, president and COO of Cascades Specialty Products Group.
“Last November, we announced to employees our decision to withdraw from the industry. At the time, we offered them the plant debt free. After several months of ongoing efforts on the part of buyer Gino Lévesque, the Québec government and Cascades to come up with a financial package, the project was abandoned because of a lack of new investors," Langevin continues. "With the failure of the turnaround project and the loss of numerous key employees, today we are forced to announce the end of these activities.”
The plant closing does not include Cascades’ coated boxboard manufacturing facility located in East Angus.