KINGSEY
FALLS, QC, April 25, 2023 /PRNewswire/ - Cascades
(TSX: CAS) announces an important repositioning of its Tissue
Papers platform to enhance the performance of the business. The
Company will simplify operations by concentrating the majority of
its tissue product operating activities at core, geographically
well-positioned sites that offer opportunities for future
development. These changes will reduce costs, create synergies and
significantly improve the Tissue Group's financial, operational and
environmental performance. This decision will not affect the level
of service Cascades provides to its customers.
Beginning in July 2023, Cascades
will progressively close its underperforming plants in Barnwell, South Carolina, and Scappoose, Oregon, as well as the virgin paper
tissue machine at its St. Helens
plant, also in Oregon. The
equipment slated for closure, which have a combined total annual
rated capacity of 92,000 short tons of tissue paper and 10 million
cases of converted product, have been operating below capacity
producing 56,000 short tons of tissue paper and 5 million cases of
converted product in 2022, mostly on the West coast. A portion of
this production will be absorbed by open capacity at our other
facilities and by the increase in productivity at our sites,
particularly in the United States.
Cascades has the option to evaluate the possibility of
redeploying the seven conversion lines impacted by this decision to
other sites at a later date.
Closure costs, including severance, are expected to total
approximately $20 to
$25 million. Cascades will provide details about the impact of
the announcement on its 2022-2024 Strategic Plan objectives in
conjunction with the release of First Quarter 2023 financial
results on May 11th.
Cascades will work closely with its 300 affected employees to
mitigate the impact of this announcement. This will include, among
other things, offering to relocate as many employees as possible to
its other business units in the United
States. Employees who cannot or do not wish to relocate to
other plants will receive support in their search for other
employment.
"With fewer sites, better resource allocation, and a strong
business strategy, we believe this decision will position Cascades
to create more value for its shareholders and customers. I'm
convinced that the steps taken today will allow us to achieve our
objectives for improving Tissue Group's performance", said
Cascades President and CEO Mario
Plourde.
"Today's announcement lays the groundwork for a simplified and
sustainable production model that will better meet both our
customers' and Cascades' long-term growth aspirations," said
President and Chief operating officer of the Tissue Group,
Jean-David Tardif. "This was not an
easy decision to make, but it's the right one for the company's
future. I'd like to extend my heartfelt thanks to our employees
impacted by this decision, and I hope that many of them will be
able to stay with the company."
Founded in 1964, Cascades offers sustainable, innovative and
value-added solutions for packaging, hygiene and recovery needs.
The company employs approximately 10,000 women and men, who work in
a network of nearly 80 production units in North America. With its management philosophy,
half a century of experience in recycling, and continuous efforts
in research and development as driving forces, Cascades continues
to deliver the innovative products that customers have come to rely
on, while contributing to the well-being of people, communities,
and the planet. Cascades' shares trade on the Toronto Stock
Exchange under the ticker symbol CAS.
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SOURCE Cascades Inc.