Business News

Significant reorganization at Cascades

Wednesday 19. March 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.”