Greenpac is a lightweight containerboard mill that manufactures linerboard from 100% recycled fibres on a single machine having a trim of 328 inches (8.33m)
Image: Cascades to acquire stake of CDPQ in Greenpac. Photo: courtesy of Adam Radosavljevic from Pixabay.
Packaging solutions provider Cascades has agreed to acquire the stake of Caisse de dépôt et placement du Québec (CDPQ) in Greenpac Holding for $93m.
Located in Niagara Falls, New York, Greenpac is a jointly established company in April 2010 by Cascades in partnership with CDPQ, Jamestown Container Companies and Containerboard Partners.
CDPQ owns a 20.2% interest in Greenpac, a lightweight containerboard mill that manufactures linerboard from 100% recycled fibres on a single machine having a trim of 328 inches (8.33m).
Cascades president and CEO Mario Plourde said: “This transaction is an important part of Cascades’ strategic plan, and will improve our available cash flow.
“This decision is another step in a series of actions that we have carried out over the past few years to improve our position in an increasingly competitive market.”
The transaction is expected to be completed by 3 January 2020.
Cascades owns a 66.1% stake in Greenpac
Currently, Cascades owns a 66.1% of stake in Greenpac, which manufactures 540,000 short tons of lightweight linerboard per year.
The mill is equipped with a single Metso PM 1 containerboard machine and employs 152 people. The complete production line from headbox to roll handling is supplied by Metso.
Recently, the packaging solutions provider has introduced a new cardboard food tray made from 100% recycled and recyclable material.
Containers for fresh food packaging made from 100% recycled fibres collected from used waste are available in the North American market.
The new cardboard food tray features water-based barrier coating, which protects it against humidity and improves packaging efficiency without affecting the recyclability of the cardboard.
The patented coating is a recyclable and compostable replacement solution for traditional wax or plastic-based applications typically used in cardboard food packaging.
In May this year, Cascades Sonoco, a joint venture of Cascades and Sonoco Products Company, has opened an expanded eco-friendly packaging facility in Birmingham, Alabama, US.