30 employees affected, production moving to NY and Laval.
August 14, 2012
by CANADIAN PRESS
TORONTO: Cascades Inc. is permanently closing its paper napkin plant in Toronto, a shut down that will affect about 30 employees.
The company said production from the McNicoll Street factory will be redirected to its plants in Laval, Que., and Waterford, NY.
“In line with our restructuring actions to increase our operations’ efficiency, this decision was taken to secure our position as leader in the away-from-home tissue paper sector,” said Suzanne Blanchet, president and chief executive of Cascades Tissue Group.
“This initiative will enable us to maximize the production at Laval and Waterford plants, while continuing to offer a first-class product and service to our customers.”
The move does not affect its Milliken Street plant, also located in Toronto.
Cascades has been restructuring to focus on its core tissue and packaging businesses.
The company reported a second-quarter profit of $7 million or eight cents per share, compared with $122 million or $1.27 per share a year ago when the company sold its Dopaco paper cup and food carton business. Excluding one-time items, adjusted net earnings were $7 million or eight cents per share, compared to a loss of $9 million or nine cents per share in the prior year.
Cascades attributed the improved profitability to higher volumes, lower energy costs and a weaker Canadian dollar.
© 2012 The Canadian Press