KINGSEY FALLS, QC, Oct. 8, 2020 - Cascades Inc. (TSX: CAS), a leader in eco–friendly recycling, packaging and hygiene solutions, announces that it will progressively and permanently close tissue production and converting operations at its Ransom and Pittston plants, located in Pennsylvania, between December 7 and January 31st of 2021.
The two paper machines at the Ransom plant have a total annual production capacity of 50,000 short tonnes of tissue paper. Currently, the conversion of this volume into 6 million cases of product occurs primarily at the Pittston plant. These volumes will be moved to other Cascades plants and filled with additional capacity. The two sites employ a total of 229 workers.
"The aging equipment of these facilities, the low profitability, the high logistic costs and our recently announced investments in other production and converting units in the U.S. have prompted us to move production to our other sites to optimize operational efficiency. The closure of these units is part of our ongoing strategic initiatives to improve the Tissue Group's profitability. We would like to reassure our customers that Cascades' service and product quality levels will not be impacted by this decision," said Jean-David Tardif, President and Chief Operating Officer of Cascades Tissue Group.
Over the coming weeks and months, Cascades will work to mitigate the impact of this announcement on the employees of the Ransom and Pittston operations, including by offering as many of them as possible the option to transfer to Cascades' other business units. Employees who cannot, or do not wish to relocate to other plants, will receive support in their search for other employment.
"I want to thank every one of our employees at the Ransom and Pittston operations for their loyalty and dedication over the years. I would also like to thank them in advance for their professionalism and commitment to continuing to serve our customers until the closures of the facilities," concluded Jean-David Tardif.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs 12,000 women and men across a network of over 90 facilities in North America and Europe. Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. Cascades' shares trade on the Toronto Stock Exchange under the ticker symbol CAS.
Source: Cascades Inc.