Canadian Manufacturing

Quebec’s Cascades officially announces closure of Swedish plant

Cascades Djupafors subsidiary in Ronneby, Sweden, closing due to weak market conditions



KINGSEY FALLS, Que.—Canadian green packaging and tissue products maker Cascades Inc. said it plans to shutter its Swedish subsidiary in June.

The Quebec-based firm said the decision comes after reaching an agreement with unions to close its Cascades Djupafors subsidiary in Ronneby, Sweden.

Cascades president and CEO Mario Plourde said the move comes in response to “weak market conditions” in Europe.

“The current economic situation in Europe is forcing us to reorganize our European production activities in order to compete,” Plourde said in a statement.

The company first announced the potential closure of the facility in February.

Production at the mill, located about 500 kilometres south of Stockholm on the country’s southern coast, will end June 30, 2014.

Following the closure, a number of customers will be served by the company’s mill in La Rochette, France.

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

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