Cascades in talks with Swedish unions over potential plant closure

KINGSEY FALLS, Que.—Quebec-based packaging and tissue products maker Cascades Inc. said its Swedish subsidiary will begin consulting with unions over the potential closure of a plant in the Scandinavian nation.

According to Cascades, management at its Djupafors subsidiary will sit down with unions starting Feb. 25 to talk about the possible closure of its coated boxboard plant in Ronneby, Sweden, about 500 kilometres south of Stockholm on the country’s southern coast.

“Djupafors is in a difficult financial position and is operating in a very competitive market,” Cascades president and CEO Mario Plourde said in a statement.

“The announcement is part of a revision and restructuring process of our manufacturing platform in Europe. It is also worth noting that we have been dealing with a difficult economic environment in Europe since 2011.”

Acquired by Cascades in 1989, the plant employs 130 people and has an annual production capacity of 60,000 tonnes of boxboard.