Cascades acquires Virginia newsprint mill for US$34.2M
The Quebec company will convert the facility to produce recycled linerboard
KINGSEY FALLS, Que.—Quebec packaging and tissue product manufacturer Cascades Inc. has acquired a newsprint paper mill in Virginia from Connecticut-based White Birch Paper Co. for US$34.2 million.
The newsprint paper machine presently located at the Bear Island facility in Ashland, Virginia, will be reconfigured to produce recycled linerboard for the North American market.
During the period prior to the conversion, White Birch will temporarily operate the site as a newsprint mill, under a 27-month lease.
Cascades says that as presently contemplated, the conversion would require an estimated investment of between US$275 and US$300 million, with production expected to begin in 2021.
Details of the project will be announced when plans are finalized and approved by the board of directors, expected in the course of 2019.
Mario Plourde, CEO of Cascades, said, “This project is directly in line with the goals of our strategic plan which include, among other things, investing in our core sectors of packaging and tissue through modernization, and expanding our geographical footprint.”