KINGSEY FALLS, QC ,-- Cascades Inc., a leader in the recovery and production of green packaging and tissue products, has announced that, following a consultation process with the unions, it has reached an agreement concerning the closure of its subsidiary, Cascades Djupafors, located in Ronneby, Sweden .
Production at the mill will thus end definitively on June 30, 2014 . Following the closure, a number of customers will be served by the mill in La Rochette, France . Agreements have already been reached with these customers in order to avoid any disruptions in deliveries.
"Today, it is with regret that we announce this difficult decision, which is the result of weak market conditions. The current economic situation in Europe is forcing us to reorganize our European production activities in order to compete. I would like to extend my sincere thanks to the employees in Djupafors for their work, and the loyalty they have demonstrated to Cascades over the years. We will be with them throughout this difficult time," added President and Chief Executive Officer, Mario Plourde .
The plant, acquired by Cascades in 1989, has 130 employees and specializes in the manufacture of coated boxboard for folding boxes made from virgin fibres. It has an annual production capacity of 60,000 tonnes.