Cascades announces plans to proceed with the strategic Bear Island mill conversion project located in Virginia. Subject to obtaining final permits, the currently idled newsprint machine will be converted to a 1st quartile containerboard machine capable of producing high-quality, lightweight, 100% recycled linerboard and medium for the North American market.
The total cost of the Bear Island mill project will be US$380 million, which includes the initial US$35 million acquisition cost paid to White Birch Papers in 2018. Following completion of the Offering, the equity requirements of the Bear Island mill project will be fully financed.
The plant will have an annual production capacity of 465,000 short tons and is scheduled to start up in the fourth quarter of 2022. It will operate at approximately 80% of capacity by the end of 2023, reaching 100% by the end of 2025.
"This investment, one of the largest in our Company’s history, is a decisive and very important strategic move in the modernization of our packaging assets," explains Mario Plourde, President and Chief Executive Officer of Cascades. "By adding the Bear Island mill to our platform, more than 60% of our containerboard manufacturing capacity will be in the top quartile of the industry. In addition to offering a unique development platform, this plant will strengthen our geographic positioning and presence in the U.S. and will enhance the competitiveness of our asset base and our product offering regardless of economic conditions."
"From an operational standpoint, Bear Island will also optimize the flexibility of our manufacturing platform by providing a product offering that will be complementary to its sister plant Greenpac, located in Niagara Falls (NY)" adds Mr. Plourde. "Bear Island will also offer 100% recycled products with light basis weights. Greatly valued by our current and future customers, these eco-responsible products are particularly well suited for e-commerce."