Cascades Inc, a manufacturer of environmentally-responsible recovery, packaging and sanitation solutions, has announced plans to close its Laval plant in Québec, which specializes in the manufacture of napkins for the away-from-home market.
The plant, which has an annual converting capacity of 1.4 million cases, will run its last shift on 30 June 2021.
The volume will be moved to other Cascades plants and filled by additional capacity. The plant currently employs 54 workers.
Jean-David Tardif, president and COO at Cascades Tissue Group, said that falling visitor numbers to restaurants and hotels as a result of Covid-19 had severely impacted the business.
“This situation, combined with high logistics costs, prompted us to move production to other sites in order to optimize our operations, reduce our costs and create synergies.
“It is important to note that this decision will in no way affect product quality or the level of service we provide to our customers, or Cascades’ ability to meet demand for our products.”
Until the plant is closed, Cascades will work closely with its employees to reduce the impact of the announcement, it said.
Among other things, it will offer to relocate as many employees as possible to other business units in Québec.
Employees who are not able, or do not wish to relocate to other plants will be offered support in their search for other employment.
Mr Tardif said the decision to close the factory had not been easy.
“We would like to thank the Cascaders at the Laval plant for their loyalty over the years. I hope that as many as possible will stay with the company. I would also like to thank them in advance for their professionalism and commitment to serving our customers until the site closes.”
Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs.
The company employs 12,000 women and men, who work in over 90 production units in North America and Europe.