Cascades Announces Bear Island Mill Conversion Project Plan

SEATTLE (Scrap Monster): Cascades, Inc. announced plans to proceed with the Bear Island mill conversion project located in Virginia. The project, which aims to convert newsprint machine to a first quartile containerboard machine, is subject to obtaining final permits.

The total cost of the Bear Island mill project is estimated at around $380 million. Upon operation, the machine will produce high-quality, lightweight, 100% recycled linerboard and medium. The plant, scheduled to start up in Q4 2022, will have an annual production capacity of 465,000 short tons. The plant will operate at 100% capacity by the end of 2025.

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The company announced that it has entered into an agreement with CIBC Capital Markets, RBC Capital Markets and BMO Capital Markets on behalf of a syndicate of underwriters. Consequently, Cascades will issue 7,441,000 common shares of the company at a price of $16.80 per share, for gross proceeds of nearly $125 million, which in turn will fund the equity portion of the conversion project.

Mario Plourde, President and Chief Executive Officer of Cascades termed the investment as one of the largest in the company’s history. The strategic move will help in modernizing its packaging assets and strengthen its geographic positioning and presence in the U.S., Plourde added.