Cascades Recovery and Cellmark Recycling form joint venture

Cascades Recovery Inc. (CRI), Toronto, and Cellmark Recycling Inc., a large trading group with North American headquarters in San Rafael, California, have announced a joint venture agreement between CRI and CellMark BC Holdings Inc., Cellmark’s Canadian division.

The joint venture, called CasCell Trading Group Inc., will take over Cascades’ Material Management Group (MMG) in the western provinces of Canada. MMG was responsible for marketing the recyclables collected and processed at Cascades’ nine recycling facilities in western Canada.

Provinces covered by the new joint venture include Manitoba, Saskatchewan, Alberta and British Columbia.

Cascades will retain the MMG division that serves the eastern part of Canada and the United States.

CasCell Trading Group Inc. will be headquartered in Surrey, British Columbia. Cascades’ staff who previously worked in its MMG for western Canada will be absorbed by the new company.

CasCell Trading will be managed by Chuck Peeling, who has more than 25 years of experience in the paper and paper recycling industry.

Peeling says the joint venture deal makes sense for both companies. While Cascades and Cellmark were competing in the same geographic region, both companies felt combining their tonnages for marketing purposes would be beneficial, he says. 

Peeling says CasCell Trading will handle the marketing of all recyclables collected and processed at Cascades’ nine facilities in western Canada and at the three recycling facilities Cellmark operates. The plants themselves will remain under the ownership of the existing companies.

This transaction is effective May 1, 2015.