The restructuring affects three regional hubs: York, Pennsylvania, and the Quebec towns of Saint-Césaire and Berthierville. According to the company, the Berthierville facility ceased operations immediately, while the York plant is scheduled to close by Feb. 19. The Saint-Césaire site will conclude its operations no later than April 17, marking the end of Cascades’ involvement in these specific niche segments.

Strategic Realignment and Market Pressures

Cascades attributed the closures to a lack of profitability and a misalignment with its broader corporate trajectory. Both the York and Saint-Césaire locations have faced years of dwindling demand, making their continued operation unsustainable. The company stated that these facilities specialized in niche products that no longer fit within its streamlined portfolio.

To facilitate the exit, Cascades reached an agreement with Emballages LM, a Quebec-based honeycomb paperboard producer. The deal, valued at 9 million Canadian dollars, involves the acquisition of specific assets from the Berthierville location. This transaction allows Cascades to recoup capital while the buyer expands its footprint in the regional market.

Impact on Workforce

The move will result in the elimination of 114 positions across the three sites. The Berthierville closure is the most significant in terms of personnel, impacting 52 employees. The shutdowns in York and Saint-Césaire will affect 37 and 25 workers, respectively. Cascades has not yet detailed the specific severance or transition support being offered to the displaced workforce.