Cascades, Inc. Breathes New Life Into Idled Virginia Newsprint Mill

SEATTLE (Scrap Monster): Cascades, Inc.-the leading manufacturer and marketer of packaging and tissue products announced acquisition of idled newsprint mill in Hanover County, Virginia. The acquisition is for a sum of $34.2 million. The factory was closed in June 2017, resulting in 165 job losses.

ALSO READ: Cascades Inc. Reports Robust Q1 Results and Positive Near-Term Outlook

According to press release issued by the company, it plans to convert the facility into recycled containerboard production. The newsprint machine located at the site will be reconfigured. The company had reached an agreement with owner White Birch, which allows the site to be operated under a 27-month lease. The details of the conversion project are yet to be announced, as the final plan is awaiting approval by the Board of Directors. It anticipates an investment of approximately $275 million, which in turn will create nearly 140 jobs in Hanover County. Cascades, Inc. expects the converted plant to become operational by 2021. The estimated production capacity of the new machine is around 400,000 tons per annum.

Mr. Mario Plourde, CEO of Cascades noted that the Bear Island site’s strategic location will deliver easier raw material sourcing and significant logistics benefits. The acquisition is in line with the strategy to expand its geographical footprint by investing in core sectors. The acquisition of the highly competitive facility will generate solid returns for its shareholders, Plourde added.

Mr. Charles Malo , COO of Cascades Containerboard Packaging too cited several advantages of acquisition including access to an experienced workforce with extensive papermaking experience.

It must be noted that JLL-the commercial real estate firm handling the sale of the plant had announced last week that it intends to restart operations at the mill over next three months.