Cascades has exited the honeycomb paperboard and partition packaging segments, resulting in the closure of three plants across the US and Canada.
The company’s facility in Berthierville, Quebec, which produces honeycomb packaging, is closing with immediate effect. This decision affects 52 employees.
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Certain assets from this plant will be sold to Emballages LM for approximately C$9m ($6.5m).
Emballages LM will take steps to transition customers and continue supplying honeycomb paperboard products.
Furthermore, Cascades’ plant in York, Pennsylvania, is scheduled to close by 19 February 2026.
Cascades attributed this move to a drop in regional demand that no longer supports profitable operations. The closure will impact 37 employees.
In Saint-Césaire, Quebec, the facility producing cardboard partitions for beverage packaging is set to cease operations by 17 April 2026.
Cascades cited declining market demand and logistical challenges as reasons for the closure, which will affect 25 workers.
The company said it plans to support staff at these locations with job search assistance and encourages affected employees to seek opportunities within its other facilities.
The closures do not impact the Cascades’ plant in Sonoco, Berthierville, which is located next to an affected site in Berthierville.
Cascades CEO and president Hugues Simon said: “Focusing Cascades’ assets on its strategic markets is essential to achieving our optimisation and profitability improvement objectives. The markets served by these plants no longer align with the business strategy of our packaging sector.
“This refocusing will allow us to invest in strengthening our position as a partner of choice for customers in our priority sectors. I would like to extend a heartfelt thank you to the employees of these three facilities for their dedication and contributions over the years.”
Last month, Cascades agreed to sell its corrugated packaging plant in Richmond, British Columbia, to Crown Paper Group for C$65.5m.
Cascades operates 60 facilities in North America and employs over 9,000 people.
