Canada Stockwatch – Green packaging and paper products manufacturer Cascades, Inc. (TSE:CAS, Mkt cap 687.00M, P/E – , Div/yield 0.04/2.19, EPS -0.68, Shares 94.24M) has announced plans to spend $26 million on new technology at its Norampac – Cabano facility, which it believes will improve efficiency and make existing jobs more secure.
The new process, which is used to extract hemicellulose, a cellulosic sugar with high value-added potential, from wood chips, is said to be a Canadian first.
The innovative project marks a major advance in biorefinery development in the country, the Kingsey Falls-based firm said in a statement.
Cascades added that the project will be supported by a $10 million investment from Natural Resources Canada’s Investments in Forest Industry Transformation (IFIT) program and an additional $4.4 million from the Québec Ministère des Forêts, de la Faune et des Parcs.
The new process is said to be more environmentally friendly and economical, replacing the use of chemical products which would otherwise have to be purchased, shipped and disposed of responsibly.
Mario Plourde, president and CEO of Cascades, said the announcement proves the company is dedicated to sustainable development, adding: “This new process will enable improvements in the efficiency and competitiveness of our Cabano plant’s current corrugated paper production process, thus making existing jobs more secure.”
Greg Rickford, federal Minister of Natural Resources, claimed that the investment is also a further example of how the Canadian government is helping the forest industry “bring innovative, high-value products to the marketplace, increasing Canada’s global competitiveness and protecting jobs in the local community.”
Canada Stockwatch – Cascades’ net income grew year over year last quarter from a loss of $0.50 per share to break-even.
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