Cascades acquires tissue mill.

Cascades Inc., Kingsey Falls, Quebec, has announced the acquisition of a tissue mill located in Memphis, Tenn. The idled assets purchased include a paper machine, converting lines and a de-inking pulp mill.

The de-inking pulp mill was previously owned or operated by American Tissue. The tissue paper machine and converting lines were previously owned by a trustee on behalf of GE Commercial & Industrial Finance.

The acquisition will increase Cascades' tissue capacity by approximately 40,000 short tons per year. The start-up of the tissue machine will be dictated by market demand, the company has indicated. The converting lines, which are expected to start-up gradually later in 2004, will produce bathroom tissue and paper napkins.

"This new acquisition represents a great opportunity for us to secure good assets at a fair price," says Suzanne Blanchet, president and CEO of Cascades' Tissue Group. "But more importantly, it is in line with our current development strategy. This investment of approximately $11.5 million will enhance our presence in the Southern U.S., further strengthening our ability to serve North American customers coast to coast in the retail as well as the commercial and industrial markets."