#Canada #Cascades Inc. #Kingsey Falls #Honeycomb Packaging #Berthierville

Cascades Inc. Ends Honeycomb Packaging Operations

Cascades Inc. recently declared its strategic decision to cease operations in the honeycomb paperboard and partition packaging product sectors. This significant move comes as part of a broader reassessment of the company's focus areas, allowing it to streamline its operations and shift towards more strategic markets.

The company will permanently close three facilities located in York, Pennsylvania, as well as Saint-Césaire and Berthierville in Quebec. These locations have historically produced honeycomb packaging and partition products but have struggled with declining demand, making them less viable for the future growth strategies of Cascades.

The York facility, specializing in honeycomb packaging, is set to close by February 19, 2026, affecting 37 employees, while the Berthierville site will stop its operations immediately, impacting 52 staff members. The Saint-Césaire plant, known for creating cardboard partitions specifically for the beverage market, will cease operations by April 17, 2026, impacting 25 employees. Over the years, the profitability of the Saint-Césaire facility diminished due to dwindling market demand and its isolated location, which hampered competitiveness.

Hugues Simon, the President and CEO of Cascades, emphasized that concentrating the company's efforts on strategic markets aligns with their goal of improving efficiency and profitability. He stated, “Focusing Cascades' assets on its strategic markets is essential to achieving our optimization and profitability improvement objectives. The markets served by these plants no longer align with the business strategy of our Packaging sector.”

To facilitate this transition, Cascades will provide support for affected employees, including job search assistance, and urges them to consider positions at other Cascades facilities. During this period, the company aims to ensure a smooth handover, as it has reached an agreement to sell the assets of the closed plants to Emballages LM, a key player in the North American honeycomb paperboard market, for roughly $9 million.

Founded in 1964, Cascades prides itself on innovating sustainable and value-driven packaging solutions. With over 9,000 employees spread across 60 operating locations, the firm continues to push forward with a commitment to sustainability. Their recent strategic decision signals a new direction for the company's operations, as they aim to fortify their standing as a leading partner to clients in broader segments, ensuring continued customer satisfaction and adapting to market dynamics.

Despite the closures, Cascades remains committed to maintaining service quality, ensuring customers will receive uninterrupted support during this transition. As they adapt and realign their resources to fit their long-term vision, Cascades expresses deep gratitude towards its dedicated employees for their unwavering service throughout the years.

This realignment signifies not only a shift in operations for Cascades but also a broader commentary on how businesses must remain agile and responsive to market changes to sustain growth and profitability. Cascades aims to leverage this transition to invest in areas that align with their ongoing commitment to innovation and sustainability—paving the way for future ventures while ensuring they continue to meet the evolving needs of the market.