CascadesThunder Bay 29 Nov 2005 05:37 GMT
Cascades Inc. announced today in a press release that they will cease operations in Thunder Bay no later than January 21, 2006. The mill closure will result in 375 lost jobs as well as a hit to the struggling resource-based economy of Thunder Bay.
Poor third-quarter earnings by Cascades over-rode the company's apparent commitments to "respect" and "social responsibility," of which they boast on their website. According to the statement made by Cascades, the "rationalization" plan came as a result of the "current economic situation within the pulp and paper industry, along with the recent sales price decrease in the fine papers sector and the unfavourable short and long term perspectives." Cascades CEO and Vice President stated that "We sincerely regret the negative impact that this decision will have on the employees as well as the Thunder Bay area."
The Rolland Group Cascades aquired the Provincial Papers Inc. mill in 1997, which previously, had been employee-run since 1992 when a group of more than 700 employees bought the mill from Abitibi-Price.