KINGSEY FALLS, QC, Nov. 9 /CNW Telbec/ - Cascades (CAS-TSX) announces the
shutdown of its operations at the Scierie Lemay mill located in Lac-Saint-Jean
(Québec), for an indefinite period. Eighty-three (83) employees will be
affected by the shutdown that will take place on November 30. Market
conditions in the softwood lumber market as well as profitability issues drove
Cascades' decision. Cascades is also announcing that talks are currently under
way regarding the sale of certain assets of Scierie Lemay to a company in the
region, namely, Produits Forestier Arbec s.e.n.c. The planing plant in
St-François-de-Salles is not targeted by this decision.
Cascades believes that this potential transaction would be the best
possible concrete scenario to ensure a more promising future for the sawmill
industry in the Municipality of L'Ascension. Other projects were also
considered during the past year, one of which was the re-launching of the mill
by the region in partnership with Cascades, but that project was unsuccessful.
"Cascades and the employees of Scierie Lemay have left no stone unturned
in their efforts to make the sawmill profitable", declared Eric Laflamme,
President and Chief Operating Officer of Cascades Boxboard Group. "Ten million
dollars were invested for the construction of a new sawmill and the
implementation of an ingenious recovery program for burnt wood residues.
Unfortunately, current prices in the sawmill lumber industry and the high cost
of raw materials is what is forcing us to shut down the operations in
Management at Cascades met earlier today with Union representatives and
plant employees to inform them of the terms of this shutdown for an indefinite
period as well as the measures that will be put in place to lessen the blow
that this announcement will have on the employees.
Cascades acquired 50 % of the shares of Scierie Lemay inc. in 1996 and
became the sole owner in January 2004.
Founded in 1964, Cascades produces, transforms and markets packaging and
tissue products composed mainly of recycled fibres. Cascades employs close to
14 000 employees who work in more than 100 modern and flexible production
units located in North -America and Europe. Cascades' management philosophy,
its more than 40 years of experience in recycling, its continued efforts in
research and development are strengths which enable the company to create new
products for its customers. The Cascades shares trade on the Toronto stock
exchange under the ticker symbol CAS.
For further information:
For further information: Media: Mr. Hubert Bolduc, Vice-President,
Communications and Public Affairs, cell: (514) 912-3790; Mr. Marc Jasmin, CMA
Director, Investor Relations, (819) 282-2681; Source: Mr Eric Laflamme,
President and Chief Operating Officer, Cascades Boxboard Group, Office.: (514)