Cascades and its partners hosted the construction kick off recently for the new Greenpac Mill LLC (Greenpac) containerboard mill, to be located in Niagara Falls in New York State. The ground breaking ceremony was held in the presence of Niagara Falls Mayor Paul Dyster, Regional President of the Empire State Development (ESD), Sam Hoyt, Cascades' founders, Bernard, Laurent and Alain Lemaire, Marc-André Dépin, President and Chief Executive Officer of Norampac, the three other project partners and numerous other guests.
Greenpac is a new corporation created through the efforts of Cascades with the Caisse de dépôt et placement du Québec, Jamestown Container and Containerboard Partners, for the purpose of building and operating a state of the art containerboard mill, one of its kind in North America. Its creation was also made possible thanks to theleadership of GE Capital, who structured a secured financingin the form of senior debt, through an international banking syndicate.
"Greenpac is the result of a close collaboration between Norampac and its partners, and its realization symbolizes the beginning of a new era for our company and our industry. Through Greenpac, Norampac will be able to offer high performance and innovative products which will better respond to the growing demand for lightweight packaging" declared Marc-André Dépin, President and Chief Executive Officer at Norampac.
Alain Lemaire, President and Chief Executive Officer at Cascades added: "Furthermore, this investment is consistent with our development strategy which aims at positioning the Company amongst the leaders in terms of productivity and profitability in the packaging and tissue sectors."
The construction of the Greenpac mill in Niagara Falls has been made possible thanks to the financial participation of several organizations in New York State, such as the Empire State Development, the Buffalo Niagara Enterprise and other local partners, which have established favorable economic conditions for the creation of the new company. Greenpac has been granted $60 million in brownfield tax credits administered by the New York State Department of Taxation and Finance, and $9 million were granted in Empire Zone tax credits. In addition, the New York State Energy Research and Development Authority (NYSERDA) provided a $3.7 million incentive through its Industrial and Process Efficiency Program to purchase and install energy efficient process and support systems. Finally, 10 megawatts of low-cost power have been granted by New York Power Authority (NYPA).
President, CEO & Commissioner of Empire State Development Kenneth Adams said: "Under the leadership of Governor Cuomo, Empire State Development is working steadfastly to improve New York's business climate, support new investments in our economy and drive private sector job growth. The decision by Norampac to build a new facility in Niagara Falls is just another example that New York is truly 'Open for Business.' I commend the numerous state and local partners who contributed to the advancement of this project, and congratulate Norampac on its continuing success in the region.
Construction will last until 2013 and allow the creation of more than 300 jobs, mostly in the region, between 2011 and 2013.
Mayor Paul Dyster remarked: "This is an especially gratifying groundbreaking because it marks yet another progress milestone for this City, which is clearly on a journey of renewal. Greenpac is not just a bigger paper mill, Greenpac is using the latest technology and showcasing the fact that Niagara Falls, New York is where the public sector and the private sector can work together to deliver high-wage manufacturing jobs; 500 jobs in total, just as we did at the turn of the last century, only this time it will be environmentally sound and more sustainable. I see Greenpac as a leading indicator for the future, and applaud Greenpac for their faith in Niagara".
