Cascades Fine Papers Group pursues its rationalization plan

Kingsey Falls, QC— Cascades announced the last stage in the strategic recovery plan for its Fine Papers Group plant located in Saint-Jerome. This rationalization will involve a restructuring of operations, including the closing of the smallest of the four paper machines, which produced 8,000 short tons per year, an amount equivalent to 5% of the plant’s annual capacity.

Cascades’ upper management met with the union representatives and management staff of the Saint-Jerome plant to inform them that this restructuring would gradually come into force in 2006, and that it would affect nearly 100 employees. Cascades will do everything in its power to reduce the negative impact this decision will have on the employees.

Moreover, Cascades is planning to continue investing in the Saint-Jerome plant. These investments, combined with the $20 million already invested since 2004, will ensure the competitiveness of the plant and sustain the strategic positioning of its products, which are recognized for their quality. The company is confident that it will be able to count on the cooperation of its employees to ensure the success of this rationalization plan.