Cascades expansion continues.Cascades Acquires Additional Tissue Operations in the U.S.
KINGSEY FALLS, Quebec, April 26 /CNW/ - Cascades Inc. (TSE - CAS)
announced it acquired 33 converting lines and has concluded agreements to
purchase a tissue paper mill and a paper machine through its affiliate,
Cascades Tissue Group Inc. These assets were previously owned and operated by
American Tissue Inc., a tissue and fine paper manufacturer presently in the
reorganization proceedings under the U.S. Bankruptcy Code.
The tissue mill located in Mechanicville, New York, and the tissue paper
machine, located in a pulp and paper mill belonging to Boise Cascade
Corporation in St. Helens, Oregon, have a total combined annual capacity of
110,000 tons. These assets will be acquired from American Tissue Inc. for
$35 million US. The acquisition of these units is subject to the approval of
the American bankruptcy court. Cascades expects to complete this transaction
within 60 days.
The tissue converting operations are mainly located in Waterford,
New York, and in Calexico, California. They have a total production capacity
of eight million cases and were acquired from several financial institutions
for a global amount of approximately $20 million US.
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Cascades Inc. is a leader in the manufacturing of packaging products,
tissue paper and specialized fine papers. Internationally, Cascades employs
nearly 14,000 people and operates close to 150 modern and versatile operating
units located in Canada, the United States, Mexico, France, England, Germany
and Sweden. Cascades recycles more than two million tons of paper and board
annually, supplying the majority of its fibre requirements. Leading edge de-
inking technology, sustained research and development, and 38 years of
experience in recycling are all distinctive strengths that enable Cascades to
manufacture innovative value-added products. Cascades' common shares are
traded on the Toronto Stock Exchange under the ticker symbol CAS.
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This is getting interesting.
Good luck to all