WAGRAM, N.C.—Cascades Inc. is spending US$55 million to build a new tissue plant in the United States southeast, “a targeted area of growth” for the Quebec-based company.
According to Cascades, it “will reorganize and expand” its converting activities in the southeastern U.S. to build the six-line converting facility in Wagram, N.C., about 160 east of Charlotte, and about 50 kilometres east of the company’s operations in Rockingham, N.C.
“Cascades is expanding its presence in the southeast, one of the fastest growing markets in the United States,” Suzanne Blanchet, president of Cascades’ tissue group, said in a statement.
“This investment will allow us to optimize our converting platform by relocating equipment presently used elsewhere, by adding new manufacturing equipment and installing robotized warehouse management. In doing so, we are moving closer to many key markets, and improving our productivity and logistics while enhancing customer service.”
The total annual capacity for the new converting plant is approximately 10 million cases, with the ability to produce a number of products, including bathroom tissue, kitchen towels, paper napkins and hand towels.
“Cascades has made clear its intention to prioritize investments in the tissue paper and packaging products sectors,” Cascades president and CEO Mario said.
“This new investment in Wagram will allow us to further improve our tissue manufacturing and customer service through the addition of an ultra-modern converting plant that will be ideally situated to serve the growing needs of our customers.”
Start-up is planned for the end of 2014.