Paper recycler Cascades closing containerboard mill

Paper manufacturer and recycler Cascades Inc. will close its containerboard mill in Burnaby, British Colombia, by Dec. 1 at the latest.

The mill, part of the company’s Norampac division, specializes in making 100 percent recycled linerboard, medium and gypsum. Overall it has an annual capacity of 128,000 short tons. The company will shift production gradually to other Norampac facilities.

"This decision was made to mitigate the negative impact of several factors such as the strength of the Canadian dollar, as well as very high labor and recycled fiber costs,” said Marc-Andre Dépin, president and chief executive officer of Norampac, in a press release. “In addition, the mill's profitability has been below our expectations for a few years, and we could not pursue our operations under such conditions."

The closing will affect almost 100 employees. Norampac also said it reached an agreement to sell the Burnaby property.