Cascades recently 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 end definitively on June 30, 2014.
Following the closure, a number of customers will be served by Cascades' mill in La Rochette, France. Agreements have already been reached with these customers in order to avoid any disruptions in deliveries, Cascades noted.
"Today, it is with regret that we announce this difficult decision, which is the result of weak market conditions," said Mario Plourde, President and CEO of Cascades. "The current economic situation in Europe is forcing us to reorganize our European production activities in order to compete.
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.
