| |
Kingsey Falls, March 18, 2008 – Cascades (CAS on the Toronto Stock Exchange) announces the integration of its North American boxboard operations with its containerboard operations (Norampac). In addition to achieving certain synergies, this integration will enhance the sharing of technology while creating a larger packaging group that will be better able to respond to the needs of customers in Canada and in the United States.
The activities of the Cascades Boxboard Group in North America, in particular, include four coated boxboard mills, twelve converting plants and employ more than 2,950 employees. Following the consolidation, Norampac, which is currently the largest manufacturer of containerboard in Canada, will be comprised of approximately 50 manufacturing and converting units and over 7,560 employees in the packaging sector. Management of the converting activities for the quick-service restaurant industry (Dopaco) as well as that of the boxboard activities in Europe will not be affected by this reorganization.
With full ownership of Dopaco and on the strength of the recent Reno de Medici transaction in Europe, this reorganization constitutes another milestone in the restructuring plan which aims to improve the financial performance of the boxboard sector as well as Cascades in its entirety.
In commenting on this reorganization, Alain Lemaire, President and Chief Executive Officer of Cascades stated: "This reorganization follows Cascades’ strategic plan and aims to enhance the performance of our boxboard sector. In providing additional tools to improve our profitability, the new structure will create a first-rate more competitive player in the packaging industry. In light of similar past internal reorganizations, we are convinced that this will rapidly develop operational synergies. Furthermore, our customers will be able to take advantage of this reorganization by benefiting from a more comprehensive product offering and will continue to be served in a professional and rigorous manner."
Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs nearly 14,000 men and women who work in some 100 modern and flexible production units located in North America and in Europe. Cascades' management philosophy, its more than 40 years of experience in recycling, its continuous efforts in research and development are strengths which enable the company to create innovative products for its customers. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Company's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Company's Securities and Exchange Commission filings.
For more information
Media
Mr. Hubert Bolduc
Vice-President, Communications and Public Affairs
Cascades
819 363-5164
Back to Flexo News |
