Stock Report – Cascades Inc. Sets Target Of 3% Power Reduction By 2015
Cascades, Inc. (TSE:CAS) a Canada-based company specializing in the recovery and manufacturing of green packaging and tissue paper products, has once again demonstrated its commitment to slash power consumption, announcing its target for a 3% reduction by end-2015. The company is also calling on other companies to follow its example in an effort to benefit the environment.
Cascades said that its pledge coincided with Energy Efficiency Week, an initiative launched by the Department of Natural Resource Funding, and strengthened its leadership role in energy efficiency.
The company’s ambition to curtail the volume of energy it buys for manufacturing has been set out in its 2013-2015 Sustainable Development Plan, which envisions the introduction of energy efficiency measures aimed at saving around 600,000 gigajoules of power, or the amount needed to cover the needs of 5,900 local households. Savings will be achieved through cutting use of live steam, installing heat exchangers to underpin energy recovery and real-time assessment of plant consumption on a daily basis.
Cascades started taking steps to improve energy efficiency 15 years ago, when it established Cascades GIE Inc. The goal of the innovative energy action unit was to streamline power consumption at the company’s production units. Since then, the unit has carried out a huge number of projects that have provided for over 7.5 million gigajoules in saved power, resulting in more than $60 million in cumulative energy savings.
Where energy is concerned, companies must have the same goal as for waste management, which is constant reduction, commented Fabien Demougeot, director of Cascades GIE. That’s the reason why the company is applying the 3Rs in its strategy, namely: reduce at the source, recover energy loss and replace with a more eco-friendly technology, he added.
Reduced energy costs, along with lower raw material prices and product price increases should result in better margins over the next year. As margins improve, we believe that management will take steps to reduce debt. Cascades offers good value for patient investors.