An Investment of $430 M
KINGSEY FALLS, QC, Sept. 7, 2011 /CNW Telbec/ - Cascades and its
partners hosted the construction kick off today for the new Greenpac
Mill LLC (Greenpac) containerboard mill, to be located in Niagara Falls
in New York State. The ground breaking ceremony was held in the
presence of Niagara Falls Mayor Paul Dyster, Regional President of the
Empire State Development (ESD), Sam Hoyt, Cascades' founders, Bernard,
Laurent and Alain Lemaire, Marc-André Dépin, President and Chief
Executive Officer of Norampac, the three other project partners and
numerous other guests.
Greenpac is a new corporation created through the efforts of Cascades
with the Caisse de dépôt et placement du Québec, Jamestown Container
and Containerboard Partners, for the purpose of building and operating
a state of the art containerboard mill, one of its kind in North
America. Its creation was also made possible thanks to the leadership
of GE Capital, who structured a secured financing in the form of senior
debt, through an international banking syndicate.
"Greenpac is the result of a close collaboration between Norampac and
its partners, and its realization symbolizes the beginning of a new era
for our company and our industry. Through Greenpac, Norampac will be
able to offer high performance and innovative products which will
better respond to the growing demand for lightweight packaging"
declared Marc-André Dépin, President and Chief Executive Officer at
Alain Lemaire, President and Chief Executive Officer at Cascades added:
"Furthermore, this investment is consistent with our development
strategy which aims at positioning the Company amongst the leaders in
terms of productivity and profitability in the packaging and tissue
The construction of the Greenpac mill in Niagara Falls has been made
possible thanks to the financial participation of several organizations
in New York State, such as the Empire State Development, the Buffalo
Niagara Enterprise and other local partners, which have established
favorable economic conditions for the creation of the new company.
Greenpac has been granted $60 million in brownfield tax credits
administered by the New York State Department of Taxation and Finance,
and $9 million were granted in Empire Zone tax credits. In addition,
the New York State Energy Research and Development Authority (NYSERDA)
provided a $3.7 million incentive through its Industrial and Process
Efficiency Program to purchase and install energy efficient process and
support systems. Finally, 10 megawatts of low-cost power have been
granted by New York Power Authority (NYPA).
President, CEO & Commissioner of Empire State Development Kenneth Adams
said: "Under the leadership of Governor Cuomo, Empire State Development
is working steadfastly to improve New York's business climate, support
new investments in our economy and drive private sector job growth. The
decision by Norampac to build a new facility in Niagara Falls is just
another example that New York is truly 'Open for Business.' I commend
the numerous state and local partners who contributed to the
advancement of this project, and congratulate Norampac on its
continuing success in the region.
Construction will last until 2013 and allow the creation of more than
300 jobs, mostly in the region, between 2011 and 2013.
Mayor Paul Dyster remarked: "This is an especially gratifying
groundbreaking because it marks yet another progress milestone for this
City, which is clearly on a journey of renewal. Greenpac is not just a
bigger paper mill, Greenpac is using the latest technology and
showcasing the fact that Niagara Falls, New York is where the public
sector and the private sector can work together to deliver high-wage
manufacturing jobs; 500 jobs in total, just as we did at the turn of
the last century, only this time it will be environmentally sound and
more sustainable. I see Greenpac as a leading indicator for the future,
and applaud Greenpac for their faith in Niagara".
The Greenpac mill will be constructed for a total cost of US$430 million
on a property adjacent to an existing Norampac facility in Niagara
Falls, NY. Greenpac will manufacture a light weight linerboard, made
with 100% recycled fibers, on a single machine having a width of 328
inches (8.33 meters) with an annual production capacity of 540,000
short tons. This machine will be one of the largest in North America.
Moreover, the building and the machinery will be designed for optimal
energy efficiency and many operations will be automated. Also, process
water will be treated and reused in order to reduce consumption as much
as possible, and the state of the art management system for recycled
fibres will have a positive effect on the environmental performance of
The paper machine will be manufactured by Metso, Voith will provide the
stock preparation equipment and anaerobic effluent treatment plant, and
Siemens will provide the power and control technology. MiniMill
Technologies, Inc. (MMT) has been chosen to support Norampac and its
partners in the project management.
The new mill will have a total surface area of 300,000 square feet and
will allow the creation of 108 jobs in the New York State at the
start-up, planned for the summer of 2013.
Norampac owns 37 facilities manufacturing and converting corrugated
products and folding cartons in North America, including one medium
containerboard mill and three corrugated conversion plants in the State
of New York.
Founded in 1964, Cascades produces, converts and markets packaging and
tissue products that are composed mainly of recycled fibers. The
Company employs close to 11,000 employees, who work in more than 100
units located in North America and Europe. Its management philosophy,
its more than 45 years of experience in recycling and its continued
efforts in research and development are strengths that enable Cascades
to create new products for its customers. Cascades' shares trade on the
Toronto Stock Exchange, under the ticker symbol CAS.
SOURCE CASCADES INC.
For further information:
| Media: || || Source: |
| Hubert Bolduc |
Vice-President, Communications and Public Affairs
| Marc-André Dépin, |
President and Chief Executive Officer, Norampac
| || || |
| Investors: || |
| Didier Filion |
Director, Investor Relations