Cascades is discontinuing its honeycomb paperboard and partition packaging product business and closing plants in Saint-Césaire and Berthierville, Que., and York, Pa.
The Berthierville honeycomb packaging plant (pictured) was closed last week, affecting 52 employees. LM Packaging has acquired certain assets of Cascades Enviropac – Berthierville for approximately $9 million, reportedly making it Canada’s largest producer of honeycomb cardboard. (Note: the adjacent Cascades Sonoco – Berthierville packaging plant is not affected.)
“We are proud to complete this acquisition, which represents a natural next step in the evolution of our company,” says Frédéric Jean, president and CEO of LM Packaging, which will consolidate operations at its facility in Saint‑François‑de‑la‑Rivière‑du‑Sud, Que., creating 40 jobs. “Maintaining production in Quebec is a source of great pride for us.”
The Saint-Césaire facility, which specializes in manufacturing cardboard partitions for the beverage market, will cease operations by Apr. 17, affecting 25 employees. Cascades explains this plant’s profitability has been negatively impacted by continuous decrease in market demand and its distance from its main customers.
The York facility, which manufactures honeycomb packaging products, will close permanently by Feb. 19, due to declines in regional demand, affecting 37 employees.
Cascades says it will provide support to the employees of the three plants through the transition, including job search assistance resources and encouraging them to apply for positions at its other facilities.
“The markets served by these plants no longer align with the business strategy of our packaging sector,” says Hugues Simon, president and CEO of Cascades. “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.”
