Cascades Inc. announced Wednesday that its Norampac division plant in Le Gardeur, Que., will be closed before the end of the year in a move that will displace almost 50 workers.
The closure, part of a continuing consolidation of the division’s corrugated products converting operations, will see the Le Gardeur plant’s work progressively shifted toward other Quebec-based plants that already serve the Greater Montreal region.
The Le Gardeur plant is specialized in the conversion of corrugated products and has annual revenues of $8 million.
“The decision to cease operations at the Le Gardeur plant can be explained by the necessity to continue the consolidation of our Quebec operations,” Norampac president and CEO Marc-Andre Depin said in a news release announcing the shutdown.
“Demand in the Canadian corrugated industry has been affected by unfavourable economic conditions for the past few years and it is imperative that we make the adjustments to take into account this new reality,” Depin said, adding that the consolidation would optimize production and reduce costs.
Cascades said that in order to help employees affected by this closure, Norampac has prepared a relocation program throughout its other facilities and will also offer assistance regarding employment searches.
It was unclear how many employees would be relocated and how many let go.
Cascades, with 11,000 employees at more than 100 units in North America and Europe, produces, converts and markets packaging and tissue products that are comprised mainly of recycled fibres.