Challenges at St. Helens Mill Likely to Impact Cascades' Tissue Segment
However, the performance by Tissue segment is expected to remain subdued, mainly on account of operational challenges at its St. Helen’s mill in Oregon.
SEATTLE (Scrap Monster): Cascades Inc. announced near-term and strategic outlook of its operations. The short-term expectations were announced after the company posted robust results for the fourth quarter and full year 2018.
Mr. Mario Plourde , President and Chief Executive Officer stated that the expected lower raw material pricing may result in stable near-term performance from the Containerboard segment. The positive outlook on the sector is also attributed to the sound economic metrics in North America.
However, the performance by Tissue segment is expected to remain subdued, mainly on account of operational challenges at its St. Helen’s mill in Oregon, although efforts are in full-swing towards earliest resolution of problems. The recent decline in raw material pricing and the announced price increase in some product sub-segments are likely to provide positive triggers in the near-term.
The key acquisitions during the previous year along with favorable macro-economic and political factors support a moderately positive near term outlook in European region. The anticipated price increases in virgin boxboard, lower energy costs and favorable raw material pricing are likely to offset the pricing pressure in the recycled board business.
Cascades, inc. will focus on investments of around $330 million to $400 million in 2019. The proposed investments will optimize operational performance across all sectors. It intends to complete the analysis of the Bear Island containerboard project in Virginia during the course of the year.