Cascades Steps Up Investment in Niagara Falls Containerboard Mill

SEATTLE (Scrap Monster): Cascades Inc. announced its decision to invest in Greenpac Holding LLC- a lightweight containerboard mill in Niagara Falls, new York. Accordingly, Cascades will purchase the interest of the Quebec-based investor- Caisse de dépôt et placement du Québec (CDPQ) in the company. Currently, CDPQ owns 20.2% interest in the containerboard mill.

The purchase price is estimated at around $93 million. The transaction is expected to close during the first week of January next year. It must be noted that Cascades currently owns a 66.1% interest in Greenpac.

Commenting on the investment, Mario Plourde , President and CEO, Cascades noted that the transaction is an important part of the company’s strategic plan. It will improve the company’s position in an increasingly competitive market and also help to enhance its available cash flow, Plourde said.

Greenpac is regarded as one among the most advanced mills in North America. It has a production capacity of 540,000 short tons of lightweight linerboard. The mill currently employs 152 people.

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