Cascades announced that this summer it will close a pair of underperforming recycled fiber facilities and decommission one tissue machine.
Plants in Barnwell, S.C., and Scappoose, Ore. will be shut down. The South Carolina plant mainly deals in recycled fibers and the Oregon plant handles recycled paper, according to the company’s website. A virgin paper tissue machine at a St. Helens, Ore. plant will also be shut down, a press release stated.
With the closures, the Quebec-based company hopes to “simplify operations by concentrating the majority of its tissue product operating activities at core, geographically well-positioned sites that offer opportunities for future development,” the press release stated.
Beginning in July 2023, the plants will be progressively closed. The plants and the machine have a combined annual rated capacity of 92,000 short tons of tissue paper and 10 million cases of converted product, but only produced 56,000 short tons of tissue paper and 5 million cases of converted product in 2022, according to the press release.
Cascades’ other facilities will absorb the closed plants’ output, but the company also has the option of redeploying the seven soon-to-be-closed conversion lines at other sites at a later date.
Estimated closure costs, including severance, are between $20 million and $25 million, the press release noted.
Mario Plourde, Cascades President and CEO, said in the press release that “with fewer sites, better resource allocation and a strong business strategy, we believe this decision will position Cascades to create more value for its shareholders and customers.”
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