Cascades, a manufacturer of green packaging and tissue products, has acquired the White Birch, Bear Island newsprint manufacturing facility in Virginia, US for $34.2m.
Image: Cascades produces packaging products. Photo: courtesy of Cascades inc.
The firm now plans to invest $275m to reconfigure the newsprint paper machine located at the site to produce high quality recycled lightweight linerboard and medium for the North American market.
Located in the former Bear Island Paper Mill in Hanover County, the new machine is expected to have an annual production capacity of 400,000 tons. It is planned to commence production in 2021.
Cascades said that the project, which is expected to create 140 new jobs, will be finalized and approved by the company’s board of directors in the course of 2019.
Cascades CEO Mario Plourde said: “This project is directly in line with the goals of our strategic plan which include, among other things, investing in our core sectors of packaging and tissue through modernization, and expanding our geographical footprint.
“In addition to the paper machine that is particularly well suited for conversion, the Bear Island site is strategically located for raw material sourcing and logistics.
“Based on the success of our Greenpac Mill, we expect this to be a highly competitive facility that will significantly contribute to the success of our containerboard operations by supporting our geographic expansion in the US market, in addition to generating solid returns for our shareholders.”
Headquartered in Kingsey Falls, Canada, Cascades is engaged in producing, converting, and marketing packaging and tissue products composed mainly of recycled fibers.
Employing 11,000 people, the company operates more than 90 manufacturing facilities located in North America and Europe.
Hanover County board of supervisors chairman Sean Davis said: “The Bear Island Facility has played a critical role in the local Hanover economy for almost 40 years, and we are excited to see that continue with the significant capital investment being made to up-fit and repurpose the plant, along with the new jobs that this announcement will bring.”