Cascades Closing Fine Paper Plant in Thunder Bay

Cascades announced that it will cease the operations of its Cascades Fine Papers Group, Thunder Bay Division plant which specializes in the manufacturing of coated papers.

The closing will take place by Jan. 21, 2006.

The current economic situation within the pulp and paper industry, along with the recent sales price decrease in the fine papers sector and the unfavorable short and long term perspectives compel Cascades to close the plant. Moreover, the reduced demand and increased price of raw material and energy, combined with an increase of the Canadian dollar compared to the US dollar strongly affected the plant's economic performance.

Cascades also plans to re-evaluate the operations of its fine papers plant located in Saint-Jerome to significantly reduce costs and ensure a better future for the plant. In order to achieve this, a strategic recovery plan is underway. The plant's positioning in a niche market along with the important investments made during the past years should ensure the viability of the Saint-Jerome plant on a long-term basis.