A fire at the Greenpac Mill facilities in Niagara Falls forced Cascades, Inc. (TSE:CAS, Mkt cap 576.17M, P/E – , Div/yield 0.04/2.61, EPS -0.33, Shares 94.15M) to temporarily shut down its Greenpac and Norampac Niagara Falls containerboard mills.
News station WGRZ said the fire started about 2:30 p.m. on Saturday and was still burning some 48 hours later.
WGRZ report that the fire ignited when roughly 50 cardboard bales of paper, each measuring about 8′ x 4′ x 6′, caught alight. The cause for concern was underlined by the sheer number of firefighters at the scene, with fire companies from across Niagara County and its neighboring communities all in attendance.
Cascades say both mills were swiftly evacuated, ensuring no personnel were injured. The Quebec-based packaging firm said that damage to the Greenpac Mill is limited to the old corrugated containers stock (OCC) pile and the OCC conveyor. Damage to the Norampac Niagara Falls mill, however, is more extensive, but is limited to the OCC stock pile, pulper and stock preparation.
As of today, operations have resumed partially at the Greenpac and Niagara Falls mills. Both mills have begun shipping finished products manufactured prior to the fire. Production equipment at the Greenpac mill was not damaged during the fire and the mill is expected to resume normal production within next 48 hours.
Start–up of the Norampac mill will not be determined until damage to the stock preparation equipment is fully assessed. Employees of both mills are now back to work to help out with various tasks in preparation for start-up.
Norampac and Greenpac Mill produce different types of containerboard that is used in the production of corrugated boxes. Norampac, a division of Cascades, manufactures 100% recycled medium and employees 137 people. The Greenpac Mill is a brand new “state-of-the-art” factory that manufactures 100% recycled linerboard. Greenpac Mill, which started its production last year, has 118 employees and is owned at 59% by Cascades, alongside three other partners.
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