Cascades to exit honeycomb paperboard and partition packaging segments
Cascades announced the discontinuation of its activities in the honeycomb paperboard and partition packaging product sectors. As a result, three facilities located in York, Pennsylvania, and Saint-Césaire and Berthierville, Québec, will be closed.
The decision forms part of Cascades’ strategy to optimise its operating platform and focus on priority markets within its Packaging sector. According to the company, the plants concerned operate in niche markets that no longer align with its long-term growth objectives.
The closure of the Berthierville honeycomb packaging plant took effect immediately, impacting 52 employees. Certain assets were acquired for approximately USD 9 million by Emballages LM, based in Saint-François-de-la-Rivière-du-Sud, Québec. Emballages LM stated its intention to ensure continuity of service and a smooth transition for customers.
The York, Pennsylvania facility, specialised in honeycomb packaging products, will be permanently closed no later than February 19, 2026. The decision follows declining regional customer demand, which no longer supported profitability. The closure will affect 37 employees.
At the Saint-Césaire site, which produces cardboard partitions for the beverage market, operations will cease no later than April 17, 2026. The plant’s profitability had been under pressure for several years due to a sustained decline in demand, as well as logistical disadvantages linked to its distance from key customers. The closure will impact 25 employees.
Cascades indicated that it will work closely with affected employees throughout the transition, offering job search assistance and encouraging applications for roles at other company facilities.
“Focusing Cascades’ assets on its strategic markets is essential to achieving our optimization and profitability improvement objectives. The markets served by these plants no longer align with the business strategy of our Packaging sector. This refocusing will allow us to invest in strengthening our position as a partner of choice for customers in our priority sectors. I would like to extend a heartfelt thank you to the employees of these three facilities for their dedication and contributions over the years,” said Hugues Simon, President and Chief Executive Officer of Cascades.
The company clarified that these decisions do not affect the operations of the Cascades Sonoco – Berthierville plant located adjacent to the Berthierville facility.
