Cascades Inc. has announced that its Laval plant in Canada will be closing on June 30, 2021, because of problems faced during the pandemic, according to a company news release.
The plant specializes in the manufacture of napkins for the away-from-home market. The Nov. 25 news release says that the plant, which has 54 workers, has an annual converting capacity of 1.4 million cases and production will move to other company plants. It will relocate as many employees as possible to its other business units in Quebec.
“COVID-19 has severely impacted the number of visitors to restaurants, hotels, and public buildings, markets served by the Laval plant,” said Jean-David Tardif, president and chief operating officer of Cascades Tissue Group. “This situation, combined with high logistics costs, prompted us to move production to other sites in order to optimize our operations, reduce our costs, and create synergies. It is important to note that this decision will in no way affect product quality or the level of service we provide to our customers, or Cascades’ ability to meet demand for our products.”
Founded in 1964, Cascades, which is headquartered in Kingsey Falls, Que., also operates a flexible plastic packaging division, according to a report in Canadian Plastics.