Canadian manufacturer of green packaging and tissue paper products, Cascades has announced the closure of its Norampac containerboard mill in Trenton, Ontario.
Negotiations for the renewal of the agreement took place from May 2011 to March 2012 between the company's management and the CEP union. The parties were unable to reach an agreement.
Norampac president and chief executive officer Marc-André Dépin said the Norampac - Trenton employees have turned down a positive and reasonable offer.
According to the company, the closure will be effective no later than 1 June 2012, following the rejection of the offer made to the employees.
"Despite substantial investments made by Cascades/Norampac to help increase its profitability, the Trenton mill has incurred significant losses over the years. These losses, combined with unacceptable labour relations, have left us with no other choice but to close the mill," added Dépin.
The Norampac - Trenton facility, which produces corrugating medium, has an annual production capacity of 150,000mt. The mill closure is expected to generate financial losses for the local forest industry that are estimated to $9.5m.
