Monday, December 16, 2019

 


Cascades Inc
(TSX: CAS.TO) Add to Watchlist
$11.36
-0.29 (-2.49%)
as of Dec 13, 2019

Cascades Announces the Closure of Tissue Converting Activities at the Waterford and Kingman Plants

Cascades Inc. (TSX:CAS.TO), a leader in eco--friendly recycling, packaging and hygiene solutions, announces that it will permanently close tissue converting operations at its Waterford, New York and Kingman, Arizona plants, effective March 27, 2020.

It is important to note that the closures do not involve the Waterford customer service or distribution centres, while the Kingman distribution centre will continue to operate until the lease ends in October 2020. The two sites produce a combined total of 9 million cases of tissue products annually and employ 213 workers. These volumes will be moved to other Cascades plants and filled with the ramp up of additional capacity.

"The difficult, but necessary decisions we are announcing today are part of our strategic efforts to improve the tissue group's profitability and position this business for long-term success. The losses recorded by these plants, existing market conditions, and our recently announced investments in acquiring and modernizing other converting units in the U.S. have prompted us to move production to our other sites to optimize operational efficiency and reduce logistic costs. We would like to reassure our customers that Cascades' service and product quality levels will not be impacted by this decision" said Jean-David Tardif, President and Chief Operating Officer of Cascades Tissue Group.

Over the coming weeks and months, Cascades will work to mitigate the impact of this announcement on its employees, including by offering as many employees as possible the option to transfer to Cascades' other business units. Employees who cannot, or do not wish to relocate to other plants, will receive support in their search for other employment.

"I want to thank each and every one of the Waterford and Kingman Cascaders for their dedication over the years. With the closure of these plants, Cascades is turning a page in its history. I would like to thank our employees in advance for their professionalism and commitment to continuing to serve our customers until the two sites close," concluded Jean-David Tardif.

Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs 11,000 women and men, who work in over 90 production units in North America and Europe. 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.

Website: www.cascades.com Green by Nature blog: blog.cascades.com Facebook: facebook.com/Cascades Twitter: twitter.com/CascadesDD | twitter.com/CascadesSD | twitter.com/CascadesInvest YouTube: youtube.com/Cascades

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SOURCE Cascades Inc.

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