Green packaging maker Cascades is investing $26.4m on a new corrugator, which will be installed at its Norampac corrugated board conversion plant in Drummondville, Quebec, Canada.
The announcement follows Cascades' recent plans to expand its Plastiques Cascades plant in Kingsey Falls and Cascades Inopak plant in Drummondville.
Expected to become operational in January next year, the new corrugator will help Norampac to increase its production capacity, while reducing operating costs.
Cascades president and CEO Mario Plourde said: "Today's announcement is part of our strategic plan aiming to focus our efforts and investments in the packaging and tissue paper strategic sectors. This process is beginning to show results.
"This announcement is a sign of confidence in the future, and we are especially happy to be able to make this investment in Drummondville, in the region where Cascades was born."
The expansion is being backed by a $6m loan from Investissement Québec.
Norampac is said to be the second largest producer of containerboard in Canada and the sixth largest in North America.
Commenting on the expansion, Norampac chief operating officer Charles Malo said: "This project is an opportunity to reinforce our leadership in the market and show our dedication to our clientele.
"Our customers are the reason for our existence and, now more than ever, we wish to improve our service offer with innovative products that meet the highest industry standards."
The 45,000ft2 building expansion of Norampac will be completed in mid-November.
