Cascades Inc., Kingsey Falls, Que., is closing its Norampac subsidiary’s containerboard mill in Burnaby, British Columbia. The plant has an annual production capacity of 128,000 tons of linerboard, corrugating medium and recycled gypsum paper.
The mill is expected to be closed by Dec. 1, 2011, after which orders will be sent to other Norampac facilities.
“This decision was taken to mitigate the negative effects of a combination of factors, such as the strong Canadian dollar, and the high costs of labor and recycled fiber. In fact, the profitability of the plant is under our expectations in recent years and we could not continue to operate it under these conditions,” Marc-André Dépin, Norampac president and CEO, says.
Norampac also says it has reached an agreement to sell the Burnaby property.
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