Cascades Announces Exit from Honeycomb Packaging and Partition Segments

Cascades Inc. (TSX: CAS) has announced the discontinuation of its honeycomb paperboard and partition packaging operations. The decision will lead to the closure of three plants in York, Pennsylvania, and Saint-Césaire and Berthierville, Quebec.

Cascades aims to optimize its operations by concentrating on strategic markets where it serves as a preferred customer partner. These plants focus on niche sectors that no longer fit the company's long-term growth strategy.

Emballages LM, based in Saint-François-de-la-Rivière-du-Sud, Quebec, has purchased the assets for about $9 million. As a leading North American honeycomb paperboard producer, Emballages LM plans to support a seamless customer transition and uphold service standards.

The Berthierville honeycomb plant closes immediately, affecting 52 employees. Emballages LM acquires select assets today for roughly $9 million to maintain continuity.

The York facility, which produces honeycomb packaging, will shut down by February 19, 2026, at the latest due to falling regional demand and unprofitability, impacting 37 workers.

The Saint-Césaire plant, specializing in cardboard partitions for beverages, faces ongoing demand declines and geographic challenges, ending operations by April 17, 2026, and affecting 25 employees.

Cascades will assist affected workers with transition support, including job search help, and invites applications to other sites. "Focusing Cascades' assets on its strategic markets is essential to achieving our optimization and profitability improvement objectives. The markets served by these plants no longer align with the business strategy of our Packaging sector. This refocusing will allow us to invest in strengthening our position as a partner of choice for customers in our priority sectors. I would like to extend a heartfelt thank you to the employees of these three facilities for their dedication and contributions over the years," said Hugues Simon, President and Chief Executive Officer.

These changes do not impact the nearby Cascades Sonoco – Berthierville plant. Founded in 1964, Cascades provides sustainable packaging, hygiene, and recovery solutions, employing over 9,000 people across 60 North American facilities. Its shares trade on the Toronto Stock Exchange under CAS.