Cascades closes paper machine.

Cascades, Kingsey Falls, Quebec, Canada, has announced plans to streamline activities at its Fine Papers Group operations in Thunder Bay, Ontario.

The plan involves the closing of the No. 5 paper machine and converting operations. Along with the machine closings, the mill will lay off around 150 employees by the end of this year. In order to minimize the affect on customers some of converting activities and manufacturing of certain paper grades will be transferred to other facilities within the Fine Papers Group.

"We know how much this decision will affect our employees and we will make the efforts required to reduce the impact. However, these measures will enable Cascades Fine Papers Group to restructure its Thunder Bay operations, to improve mill economics by more than $10 million annually and to enhance the future of the remaining 375 employees," says Gino Levesque, vice president of operations, Cascades Fine Papers Group.