100 jobs lost as Burnaby mill closes

Cascades cites strong dollar, labour and recycling costs as it shuts containerboard site.

Sad news for paperworkers: A Burnaby mill will close its gates for good in December, taking 100 jobs with it.

The Canadian Press has the story:

BURNABY -- Tissue and cardboard maker Cascades Inc. is closing its containerboard mill in the Vancouver area, cutting 100 jobs.

The Quebec company announced late Tuesday its Norampac cardboard division will shut the Burnaby operation no later than Dec. 1.

The Burnaby mill has an annual capacity of 128,000 tons and produces recycled linerboard. The mill's production will be shifted to other Norampac operations, the company said.

"This decision was made to mitigate the negative impact of several factors such as the strength of the Canadian dollar, as well as very high labour and recycled fibre costs,'' said Marc-Andre Depin, president and chief executive of Norampac.

"In addition, the mill's profitability has been below our expectations for a few years and we could not pursue our operations under such conditions.''

In a related matter, Cascades said Norampac has also struck a deal to sell its Burnaby property.

Containerboard and linerboard are raw materials used to manufacture cardboard boxes and other corrugated packaging.

Cascades produces, converts and sells packaging and tissue made mainly of recycled fibres. The company has close to 11,000 employees across North America and Europe.

The mill shutdown was announced after the close of stock markets Tuesday. Earlier, Cascades shares fell one cent to close at $4.38 on the TSX.

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