Cascades announces that its Laval plant in Québec, specializing in the manufacture of napkins for the away-from-home market, will be closing on June 30, 2021.
The Laval plant has an annual converting capacity of 1.4 million cases. This volume will be moved to other Cascades plants and filled by additional capacity. The plant currently employs 54 workers.
"COVID-19 has severely impacted the number of visitors to restaurants, hotels and public buildings, markets served by the Laval plant. This situation, combined with high logistics costs, prompted us to move production to other sites in order to optimize our operations, reduce our costs and create synergies. It is important to note that this decision will in no way affect product quality or the level of service we provide to our customers, or Cascades' ability to meet demand for our products," said Jean-David Tardif, President and Chief Operating Officer of Cascades Tissue Group.
Until the plant is closed, Cascades will work closely with its employees to reduce the impact of this announcement. Among other things, it will offer to relocate as many employees as possible to its many other business units in Québec. Employees who are not able, or do not wish to relocate to other plants will be offered support in their search for other employment.
"The decision we are announcing today has not been easy. We would like to thank the Cascaders at the Laval plant for their loyalty over the years. I hope that as many as possible will stay with the Company. I would also like to thank them in advance for their professionalism and commitment to serving our customers until the site closes," said Jean-David Tardif.
Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs 12,000 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.