Cascades Suspends Production At Its Fjordcell Pulp Mill

Kingsey Falls, QC - Cascades Inc. recently announced that it has ceased operations at its FjordCell pulp mill for an indefinite period of time. The mill, which is said to have specialized in the production of bleached softwood Kraft pulp, is located in Jonquiere (Quebec). This closure occurred during the week of July 3rd once supplies of raw material and chemicals had been depleted. The closure has affected approximately 70 employees.

The mill produced annually 82,000 tons of Kraft pulp and sold all of its production to other Cascades facilities, namely, Cascades Boxboard Group - Jonquiere and the Rolland Division of the Cascades Fine Papers Group. During this closure, other suppliers will service these facilities.

It has been claimed that despite sustained efforts by employees and the mill's management, Cascades FjordCell continues to suffer considerable monthly financial losses. The business environment which has been marked by a strong appreciation of the Canadian dollar compared to the US dollar as well as high wood and energy costs is said to dictate this course of action.

Messrs. Eric Laflamme and Alain Dubuc, respectively President and Chief Operating Officer, North America and Vice-President, Operations for the Cascades Boxboard Group, met with the union representatives and employees of Cascades FjordCell to announce the decision. Discussions will be held in the near future regarding transition measures to be implemented to alleviate the impact of this decision on employees.

SOURCE: CASCADES INC.