Continuing losses of its Trenton mill in Ontario have led Cascades to part with the containerboard mill of its Norampac division. It is the third Norampac site the company is closing in the last months.
Cascades has announced the closure of its Norampac containerboard mill located in Trenton, Ontario. The closure of the mill would be effective no later than 1 June 2012, the company said.
Labour relations as well as significant losses the Trenton mill incurred over the years had led to the decision to close the site, Cascades explained. The manufacturer said that employees had rejected the final offer regarding a new collective agreement. According to Marc-André Dépin, Norampac’s President and CEO, negotiations took place from May 2011 to March 2012 between Norampac's management and the CEP union, following which the two parties were unable to come to an agreement.
Cascades thus takes 150,000 t of corrugating medium production capacity from the market. The company said it provided markets in Canada, the United States, Europe and South America. Nearly 130 employees are said to be affected by the closure.
Norampac had to part with two other mills in Canada last year. In September 2011, Cascades announced the closure of the division’s Burnaby mill in British Columbia with production of recycled containerboard to be shut down in December at the latest. Norampac’s facility for the conversion of corrugated products in Le Gardeur was also to be closed before the end of the year, Cascades announced in October 2011.