Business News

Cascades announces new investments

Tuesday 13. January 2009 - Cascades Inc. (CAS on the Toronto Stock Exchange) is pleased to announce a first investment of $5 M at its Norampac plant in Kingsey Falls, which aims to streamline this unit that manufactures linerboard made from 100% recycled fibres. The current project consists of expanding the building to replace the winder as well as create additional space for future investments.

Since its inception in 1964, while its production totalled 10,000 tonnes per year, the plant, formerly called “Division Papier” (Paper Division), has invested $55 M in total in order to increase its annual production capacity to 90,000 tonnes. At the end of this current project, whose subsequent phases are intended for 2010 and 2011, production capacity at the plant will be greater than 125,000 tonnes per year.

In 2008, more than $12 M was invested in the seven production units in Kingsey Falls alone. In Québec, Cascades invested more than $50 M last year and approximately $175 M was allocated for fixed capital costs for the entire organization world-wide. In 2009, depending on the status of the global economic situation and its financial performance, Cascades intends to invest approximately $100 M in capital costs.