Cascades will permanently close tissue converting operations at its Waterford, New York and Kingman, Arizona plants, effective March 27, 2020.
It is important to note that the closures do not involve the Waterford customer service or distribution centres, while the Kingman distribution centre will continue to operate until the lease ends in October 2020. The two sites produce a combined total of 9 million cases of tissue products annually and employ 213 workers. These volumes will be moved to other Cascades plants and filled with the ramp up of additional capacity.
“The difficult, but necessary decisions are part of our strategic efforts to improve the tissue group’s profitability and position this business for long-term success. The losses recorded by these plants, existing market conditions, and our recently announced investments in acquiring and modernizing other converting units in the U.S. have prompted us to move production to our other sites to optimize operational efficiency and reduce logistic costs. We would like to reassure our customers that Cascades’ service and product quality levels will not be impacted by this decision” said Jean-David Tardif, President and Chief Operating Officer of Cascades Tissue Group.
Over the coming weeks and months, Cascades will work to mitigate the impact of this announcement on its employees, including by offering as many employees as possible the option to transfer to Cascades’ other business units. Employees who cannot, or do not wish to relocate to other plants, will receive support in their search for other employment.
“I want to thank each and every one of the Waterford and Kingman Cascaders for their dedication over the years. With the closure of these plants, Cascades is turning a page in its history. I would like to thank our employees in advance for their professionalism and commitment to continuing to serve our customers until the two sites close,” concluded Jean-David Tardif.