Cascades Inc. plans to cease its Kraft paper manufacturing activities in the East Angus, Quebec, on October 3, 2014. This move follows Cascades Inc.’s recent sale of Cascades Fine Papers Group to H.I.G. Capital of Miami, who were joined in the purchase by some of the fine paper operation’s management team.
Close to 175 employees will be affected by the East Angus Kraft closure, which is another step toward Cascades earlier indication that it plans to completely withdraw from the Kraft paper sector.
Cascades, in its East Angus shutdown announcement, points to unfavorable market conditions in the sector, including new competitors that can convert newsprint paper machines to produce Kraft paper, and the failure of being able to sell the paper facility.
News of the Kraft mill shutdown does not concern Cascades’ coated boxboard manufacturing plant also located in East Angus, which is Quebec’s Eastern Townships about 20 kilometres east of Sherbrooke.