Cascades to cease kraft paper operations at East Angus, Quebec plant

MONTREAL (Scrap Monster): The recycled paper and packaging company-Cascades Inc. has decided to close its paper manufacturing activities at its East Angus, Quebec plant owing to unfavorable market conditions and lack of new investors. The plant is expected to close by early-October this year.

According to the company, it had made significant investments and recovery efforts to restore operations at the plant. However, the plant has been unsuccessful in maintaining an edge in the highly competitive market.

The company had announced withdrawal decision during November last year. Efforts to sell the company failed. Meantime, many employees left the company for better opportunities. Later it had worked with Quebec government to implement a financial package, but was forced to abandon the project due to lack of new investors.

The closure is feared to affect nearly 175 jobs. However, the closure won’t affect the operations at the coated boxboard manufacturing facility in East Angus, company officials said.

Earlier during this month, the company had entered into an agreement with Rolland Enterprises Inc. towards sale of its fine papers division.