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Cascades to shut down packaging facility in US

Green packaging and tissue products producer Cascades will shut down its packaging facility in Maspeth, New York, US.

The company has decided to close Maspeth packaging plant, as part of its efforts to modernize and optimize operations in the Northeastern US.

The facility, which employs around 148 people, will be closed by December 2018.

Cascades will evaluate the possibility of relocating interested employees to its other facilities, in a bid to reduce the impact of closure on the employees.

Cascades Containerboard Packaging president and COO Charles Malo said: "To support our future development and better serve our customers, we are announcing today that the Maspeth plant's output will gradually be redeployed to our other facilities.

“This transition will be seamless for all of our customers. The property has already been put up for sale for US$72m.”

Recently, Cascades has announced an $80m investment to construct a new containerboard packaging facility in Piscataway, New Jersey, US.

The new center, which is due to start operations in 2018, will be used to produce corrugated packaging products.

The facility, which is expected to create 120 jobs, will operate in an area covering 400000ft².

On completion of the installation, the overall annual production will be over 2.4bnft², which will represent a 5% rise in the integration rate.

Established in 1964, Cascades manufactures, converts and markets packaging and tissue products that are made by using recycled fibres.

With around 11,000 employees, the company operates around 90 production units in North America and Europe.