Cascades has announced a repositioning of its tissue papers operating platform that will see it close its tissue plants in Barnwell, South Carolina, and Scappoose, Oregon.
The company said it will “concentrate the majority of its tissue product operating activities at core, geographically well-positioned sites that offer opportunities for future development”.
It added that these changes will “reduce costs, create synergies, and significantly improve the tissue group’s financial, operational and environmental performance.”
Beginning in July 2023, Cascades will progressively close its plants in Barnwell, South Carolina, in Scappoose, Oregon, as well as its virgin paper tissue machine at its St. Helens plant, also in Oregon.
It is currently working with its 300 affected employees.
The equipment slated for closure will have a combined total annual rated capacity of 92,000 short tons of tissue paper and 10 million cases of converted product.
Cascades said they have been operating below capacity producing 56,000 short tons of tissue paper and five million cases of converted product in 2022, mostly on the West coast.
A portion of this production will be absorbed by open capacity at the company’s other facilities and by the increase in productivity at its sites, particularly in the United States.
Cascades President and Chief Executive Mario Plourde, said: “With fewer sites, better resource allocation, and a strong business strategy, we believe this decision will position Cascades to create more value for its shareholders and customers.
“I’m convinced that the steps taken today will allow us to achieve our objectives for improving tissue group’s performance.”
President and Chief Operating Officer of the Tissue Group, Jean-David Tardif added: “Today’s announcement lays the groundwork for a simplified and sustainable production model that will better meet both our customers’ and Cascades’ long-term growth aspirations.
“This was not an easy decision to make, but it’s the right one for the company’s future.”