Cascades exits honeycomb packaging, partition business segments

Cascades Inc. has discontinued its activities in the honeycomb paperboard and partition packaging product sectors, closing three of its plants located in York, Pennsylvania, and Saint-Césaire and Berthierville, Quebec. 

Cascades, based in Kingsey Falls, Quebec, says the plants being closed specialize in niche markets that no longer align with the company's long-term growth plans. The company says it’s committed to optimizing its operating platform and business activities by focusing on strategic markets. 

The closure of the Berthierville honeycomb packaging plant is effective immediately, impacting 52 employees. Emballages LM, a cardboard packaging manufacturer based in Saint‑François‑de‑la‑Rivière‑du‑Sud, will acquire certain assets for approximately $9 million.  

The York facility will be closed permanently by Feb. 19. The plant specializes in the manufacturing of honeycomb packaging products, which Cascades says no longer ensures profitability due to declining regional customer demand. The closure will impact 37 employees. 

The Saint-Césaire facility specializes in the manufacturing of cardboard partitions for the beverage market. The plant's profitability has been negatively impacted over several years due to a continuous decrease in market demand, the company says. The plant's geographic distance from its main customers has also reduced its competitiveness. As a result, operations will cease by April 17, impacting 25 employees. 

Cascades says it will work closely with the employees of these plants to provide the support needed throughout this transition. Job search assistance resources will be offered by the company, and Cascades encourages employees who are impacted by these decisions to apply for positions at its other facilities. 

“Focusing Cascades' assets on its strategic markets is essential to achieving our optimization and profitability improvement objectives,” Cascades President and CEO Hugues Simon says. “The markets served by these plants no longer align with the business strategy of our packaging sector. This refocusing will allow us to invest in strengthening our position as a partner of choice for customers in our priority sectors. I would like to extend a heartfelt thank you to the employees of these three facilities for their dedication and contributions over the years.” 

These announcements do not affect the activities of the Cascades Sonoco Berthierville plant, located adjacent to the Berthierville plant.