Norampac Inc. announced plans to close its Red Rock, Ont., linerboard mill indefinitely. The company, a joint venture between Domtar and Cascades Inc., owns 8 containerboard mills and 26 corrugated products plants in the United States, Canada and France. The company expects to shutter the mill within the next 90 days. The mill manufactures unbleached kraft linerboard, and has a production capacity of around 300,000 tons per year.
The company cited sluggish economic reasons for the decision to close the plant. "This decision was taken to mitigate the negative impacts of several economic factors such as growing fiber supply costs, rising energy costs and the strengthening of the Canadian dollar. Unfortunately, we do not have any other choice at this point than to suspend the mill’s operations," said Marc-Andre Depin, president and CEO of Norampac.