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Scrap Monster
Paper Recycling August 10, 2017 01:00:18 PM

Cascades Announces Closure of New York City Packaging Plant

Paul Ploumis
ScrapMonster Author
The closure of the plant is feared to lead to layoffs of around 150 people.
Cascades Announces Closure of New York City Packaging Plant

SEATTLE (Scrap Monster): Quebec-based Cascades Inc. has announced plans to close its packaging facility in New York City. The decision announced yesterday stated that the containerboard packaging plant in 55-15 Grand Avenue, Maspeth, New York will be permanently closed by next year end. The property which hosts the facility has been put up for sale for US$72 million, company press release said.

The closure of the plant is feared to lead to layoffs of around 150 people.Charles Malo , President and Chief Operating Officer of Cascades Containerboard Packaging stated that the plant’s output will gradually be redeployed to its other facilities. The transaction will be perfectly coherent and is aimed at boosting future development and offering innovative better service to its existing and new customers.

According to Cascades, the New York City plant has already reached its physical limits. The move is considered to be part of the company’s modernization and restructuring plan for Northeastern US facilities. The company had recently cut ribbon on a $80 million state-of-the-art containerboard packaging plant in Piscataway, New Jersey, in an attempt to consolidate its containerboard and packaging business in the region. Prior to that, the company has also opened a 284,000 square-foot modern paper products manufacturing and tissue converting facility in Scappoose, Oregon, as part of its strategic capital allocation strategy.

The company press release stated that it would extend all possible help to staff impacted by the closure of the facility. It will evaluate the possibilities of relocation of interested employees to Cascade’s other facilities. Apart from that, it will also offer wide range of assistance tools to help employees in their employment search. While thanking the employees for their selfless and dedicated service over the years, it also requested employees to remain devoted in their services to customers until the final closure of the plant during end-2018.

Cascade had acquired Maspeth containerboard packaging facility in 2001. The facility that manufactures corrugated products from linerboard and corrugated medium currently has 148 employees. The products manufactured at the facility serves food, cosmetics and pharmaceutical industries, mainly in Metropolitan New York, New Jersey, Connecticut and Eastern Pennsylvania markets.

Cascades Flexible Packaging, the company’s specialized unit that manufactures flexible plastic packaging for food market had recently earned the IFS PACsecure certification-one of the world’s leading food safety standards for primary and secondary packaging materials.

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