Cascades Selling Egg Carton Division

Cascades Inc. has signed an agreement with Brodrene Hartmann A/S to sell all of its retail egg carton activities in Canada and the United States, allowing the Danish company to become the second largest supplier of molded-fiber egg cartons in North America.

This agreement translates into Cascades selling all of the equipment, working capital and goodwill of its Brantford, Ontario plant as well as the goodwill of its unit located in Thorndike, Mass.

After a transition period, the egg packaging production of the Brantford operation will be transferred to a new plant, also in Brantford, presently being established by Hartmann.

By 2004, it is estimated that the Hartmann operations in Brantford will produce over 400 million egg cartons per year. Hartmann's new plant will initially not add capacity to the North American market place.

The Thorndike tangible assets will remain under Cascades' ownership and their retail egg packaging production will be solely dedicated to Hartmann.