Cascades to Close Board Mill

The company says the decision follows the rejection of its final offer to the mill’s employees regarding a new collective bargaining agreement. Cascades says it will close the mill, which has an annual production capacity of 150,000 tons of corrugated medium, no later than June 1, 2012.

In a statement, Marc-André Dépin, Norampac president and CEO, says, “We are deeply disappointed that the Norampac – Trenton employees have turned down a positive and reasonable offer.”

“Despite substantial investments made by Cascades/Norampac to help increase its profitability, the Trenton mill has incurred significant losses over the years. These losses, combined with unacceptable labor relations, have left us with no other choice but to close the mill,” Dépin adds.

Nearly 130 employees will be affected by the closure, Cascades reports.

The Norampac – Trenton mill consumes 60 percent wood fiber and 40 percent recycled material to produce its corrugated medium. The mill is a customer of local wood suppliers, and its closure could lead to losses of nearly $9.5 million to the local forest industry, Cascades reports.