Cascades to Permanently Close Niagara Falls Manufacturing Facility, Impacting Local Workforce
Cascades to Close Niagara Falls Manufacturing Facility
In a significant move, Cascades Inc. (TSX: CAS) has declared the permanent shutdown of its corrugated medium manufacturing plant in Niagara Falls, New York. This closure is part of a larger strategy aimed at optimizing the company’s packaging production capabilities. The facility is set to cease all operations by September 3, 2025, following a history of over three decades of services to the region.
With an annual production capacity of 200,000 short tons, the Niagara Falls plant has been a vital part of Cascades’ production framework. The decision comes after a careful evaluation of the company's operational strategy, which put customer service and profitability at the forefront. The recent closure of a second machine at the same site in 2023 has triggered a longer-term assessment of the facility’s viability.
Jean-David Tardif, Executive Vice-President of Packaging at Cascades, stated, "This is a difficult decision, but one that is an essential part of our focus on optimizing the performance of our Packaging sector." He went on to express optimism about the company's future growth, highlighting a momentum that seems promising for both Cascades and its clients. Tardif emphasized the need for simplification and focus as core tenets for achieving sustainable growth.
While this decision directly impacts 123 employees, Cascades is committed to assisting them during this transition. The company is looking to provide job search support and will work closely with affected individuals to navigate their next steps. The closure will incur approximately $5 million in termination costs, underscoring the financial implications of this operational reshaping.
Cascades has been a significant contributor to the local community since its establishment in 1964, and the company continues to express gratitude for the commitment and hard work exhibited by its employees over the years. Tardif noted that while the closure of the Niagara Falls facility is impactful, it does not overshadow the achievements and contributions the plant has made throughout its 38 years of existence.
The decision is also influenced by a drive towards enhancing operational synergies that Cascades is implementing across its network. By streamlining operations, the company aims to maintain high levels of customer service even as it sheds excess manufacturing capacity. Cascades boasts a robust operational footprint with approximately 9,600 employees across 66 facilities, including 17 dedicated to recovery and recycling across North America.
The alignment of Cascades’ resources and capabilities is crucial for the company to continue offering innovative products and sustainable solutions in the packaging industry. With a focus on recycling and sustainable practices, Cascades is positioned to meet future demands while contributing positively to environmental stewardship.
As Cascades advances through this transition, both its stakeholders and the broader community will be watching closely. The lessons learned from this closure will likely influence the company’s approach to future challenges in its operations. Cascades, trading on the Toronto Stock Exchange under the ticker symbol CAS, embodies a commitment to creating lasting value for its customers and the planet.