Cascades Plans Further Capital Investments
By Canadian Packaging StaffConverting Capital Expenditure Cascades Inc. Converting Norampac
Canadian paper products powerhouse Cascades Inc. is bucking the packaging industry’s downcast mood by announcing a $5-million investment at its Norampac plant in Kingsey Falls, Que.—manufacturer of linerboard made form 100-percent recycled fibers—as well as plans to spend up to $100 million on various capital upgrades in 2009, depending on how the global economy shapes up during the course of the year.
Started up in 1964 under the banner of Division Papier (Paper Division), the plant has undergone an estimated $55 million in capital upgrades and expansions over the years, according to Cascades, boosting its production capacity up to 90,000 tonnes per year (tpy) from the original 10,000-tpy output.
The planned upgrade—calling for installation of a new winder and further plant expansion to accommodate future investments—is expected to boost the plant’s capacity up to 125,000-tpy after the project’s scheduled completion in 2011.
Last year, Cascades spent a total of $12 million on various upgrades at seven different production facilities in Kingsey Falls, which is also home to the group’s global headquarters.
Employing nearly 14,000 people at about 100 worldwide locations producing recycled packaging and tissue products, Cascades spent more than $50 million in new capital investments in the province of Quebec last year, while allocating approximately $175 million for fixed capital costs for the entire organization worldwide.