A three-year strategic update unveiled by Kingsey Falls, Quebec-based Cascades Inc. points to projected growth in the tissue sector from 2022 to 2024 and increased containerboard capacity thanks to its project at the Bear Island mill in Virginia.
The company and its CEO say the update “commits to leveraging the company’s strong asset base and product portfolio to accelerate value creation and improve profitability. The strategy also introduces new financial targets focusing on free cash flow generation and a plan to improve profitability of its tissue group.”
Cascades President and CEO Mario Plourde says, “Our plan aims to generate value for shareholders, accelerate profitability improvement and strengthen our tissue business, all while continuing to prioritize sustainability, which has been at the core of our strategy since we started business."
He continues, “Cascades is an integrated company with strong assets to fuel future profitable growth, and I am confident we have the right team and the right experience to execute on our plan that aims to generate $5 billion of revenue in 2024.”
In packaging, Cascades refers to itself as the sixth-largest containerboard producer in North America, adding that one of its top priorities in that sector involves completing the start-up of the Bear Island mill in the fourth quarter of 2022. The Virginia mill has been planned to have annual production capacity of about 465,000 tons of recycled-content linerboard and corrugated medium.
The ramp-up of that mill, along with “increasing integration with new converting capacity in the United States” and “accelerating the pace of new sustainable product development and commercial launches” has Cascades shooting for combined revenue in its packaging businesses of more than $3.5 billion in 2024.
Cascades says its tissue business “has been particularly impacted by the COVID-19 pandemic,” but that “the tissue market will provide opportunities for growth as the effects of the pandemic subside, and Cascades’ tissue assets are well-positioned to benefit from this recovery.”
The company says it has made significant investments in its tissue operations from 2017 to 2020 and will now be “focusing on production execution and efficiency, particularly in our U.S. operations.” The target, Cascades, says is to achieve revenue of $1.7 billion in 2024.
“Over the last 10 years we have taken a number of important strategic steps to reposition our business and adapt to evolving market dynamics and customer needs,” says Plourde. “I’m proud of the work we have accomplished, and I think that with this renewed vision, we are better equipped than ever to deliver for customers and shareholders.”