KINGSEY FALLS, QC - Cascades Inc. (TSX: CAS), a leader in the recovery and the manufacturing of green packaging and tissue paper products, continues to consolidate its operations and announces the permanent closure of Cascades Enviropac, located in Toronto.

Production at this unit, specialized in the manufacturing of Technicomb™ honeycomb packaging, intended primarily for the furniture packaging industry, will progressively be redirected towards the Cascades Enviropac Berthierville, Québec and the Grand Rapids, Michigan plants. Approximately 36 employees will be affected by this closure which will be effective on June 1, 2012.

"The decision to cease operations at the Toronto plant is due to a significant reduction in business volume. This decision was taken to secure the group's profitability and to improve its position as leader in the industrial packaging sector. Demand in the honeycomb packaging industry has been affected by challenging economic conditions over the past few years and it is imperative we adjust our operations based on this new economic environment. This initiative will enable us to maximize the operations at our mills of Grand Rapids and Berthierville, while continuing to offer a first-class product and service to our customers", stated Luc Langevin, President and Chief Operating Officer of Cascades Specialty Products Group.

Cascades has taken the necessary measures to help employees affected by this closure relocate to other manufacturing units and provide them with assistance in their search for work.

Source: Cascades Inc.

Have something to say? Share your thoughts with us in the comments below.