Cascades Inc. Declares Permanent Shutdown of Two Tissue Paper Machines
Cascades Inc. has announced definitive closure of two tissue paper machines located in Whitby and Scarborough in Ontario.
According to company press release, the leases for both the above plants, which are due to expire on August 27, 2019, will not be renewed. The two sites together employ 68 workers and possess a combined production capacity of 44,000 tonnes of tissue paper per annum.
Announcing the decision, Jean Jobin , President and Chief Operating Officer of Cascades Tissue Group observed that its unprofitability and the challenging market conditions have forced the company to close the machines permanently. He noted that Cascades Inc. will source externally to meet its needs and that the services to its customers will continue unaffected.
Cascades Inc. thanked all the employees at both the sites for their loyalty, dedication and commitment and assured that it will do the needful to ensure that impact of these closures are minimal. The employees at the sites will be relocated to its other business units located in the region. Those who cannot or do not wish to be relocated, will be offered all assistance in their efforts to find a new employment.
Meantime, the Q4 ’18 results published by the company indicate that Tissue segment operations reported subdued performance, mainly on account of ongoing challenging industry and operational conditions. The company foresees subdued performance from the sector to continue in the near-term, primarily on account of operational challenges at its St. Helens tissue mill in Oregon.
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