Quebec-based Cascades Inc (TSE:CAS, Mkt cap 945.85M, P/E 21.18, Div/yield 0.04/1.65, EPS 0.46, Shares 94.51M) said last week that it will build a US$64m manufacturing facility on the West Coast of the United States.
The plant in Scappoose, Oregon, will manufacture virgin and recycled bathroom tissue products and paper hand towels, supplied with material from Cascades’ existing tissue paper plant located 12 kilometers away in St. Helens.
The facility will be highly automated and will employ 80 people when fully operational.
Its production capacity will be almost six million cases per year, or approximately 53,000 tonnes of finished product.
“This project, which is part of our strategic plan for development, will provide us with a new converting capacity that will improve our integration rate and coverage of the West Coast,” said Cascades’ president and CEO, Mario Plourde. “The plant will be strategically located to allow us to better serve our customers and continue to grow in a region that offers potential for our company.”
Jean Jobin, president and chief operating officer of Cascades Tissue Group, added: “This major investment consolidates our presence in Oregon and on the West Coast and allows us to take another important step toward achieving our objective of expanding into key markets in the southern and western United States.
“This new plant will be equipped with some of the most modern assets in the industry, which will help us win additional market share. This investment will also allow us to increase our integration rate and to offer ever greater quality and flexibility.”
Business Oregon, the state’s economic development agency, welcomed the investment in the new plant.
“Cascades could expand anywhere, but because of the attractive industrial site, support from the community, and tools like the Oregon Investment Advantage program and Enterprise Zone, Cascades is choosing to continue to do business in Oregon,” commented Business Oregon director Chris Harder.
The project will break ground this summer, and the plant is expected to start operating at the end of the first quarter of 2017.
Cascades Inc. (TSE:CAS) is a Canadian company that produces, converts and markets packaging and tissue products consisting of recycled fibers. The Company operates through four segments: Containerboard, Boxboard Europe, Specialty Products (which constitutes the Company’s Packaging Products) and Tissue Papers. More from Reuters »
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