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Greenpac Ground Breaking Ceremony
Sept. 7, 2011, 12:00 p.m. EDT
KINGSEY FALLS, QC, Sept. 7, 2011 /PRNewswire via COMTEX/ -- An Investment of $430 M
Cascades and its partners hosted the construction kick off today for the new Greenpac Mill LLC (Greenpac) containerboard mill, to be located in Niagara Falls in New York State. The ground breaking ceremony was held in the presence of Niagara Falls Mayor Paul Dyster, Regional President of the Empire State Development (ESD), Sam Hoyt, Cascades' founders, Bernard, Laurent and Alain Lemaire, Marc-André Dépin, President and Chief Executive Officer of Norampac, the three other project partners and numerous other guests.
Greenpac is a new corporation created through the efforts of Cascades with the Caisse de dépôt et placement du Québec, Jamestown Container and Containerboard Partners, for the purpose of building and operating a state of the art containerboard mill, one of its kind in North America. Its creation was also made possible thanks to theleadership of GE Capital, who structured a secured financingin the form of senior debt, through an international banking syndicate.
"Greenpac is the result of a close collaboration between Norampac and its partners, and its realization symbolizes the beginning of a new era for our company and our industry. Through Greenpac, Norampac will be able to offer high performance and innovative products which will better respond to the growing demand for lightweight packaging" declared Marc-André Dépin, President and Chief Executive Officer at Norampac.
Alain Lemaire, President and Chief Executive Officer at Cascades added: "Furthermore, this investment is consistent with our development strategy which aims at positioning the Company amongst the leaders in terms of productivity and profitability in the packaging and tissue sectors."
The construction of the Greenpac mill in Niagara Falls has been made possible thanks to the financial participation of several organizations in New York State, such as the Empire State Development, the Buffalo Niagara Enterprise and other local partners, which have established favorable economic conditions for the creation of the new company. Greenpac has been granted $60 million in brownfield tax credits administered by the New York State Department of Taxation and Finance, and $9 million were granted in Empire Zone tax credits. In addition, the New York State Energy Research and Development Authority (NYSERDA) provided a $3.7 million incentive through its Industrial and Process Efficiency Program to purchase and install energy efficient process and support systems. Finally, 10 megawatts of low-cost power have been granted by New York Power Authority (NYPA).
President, CEO & Commissioner of Empire State Development Kenneth Adams said: "Under the leadership of Governor Cuomo, Empire State Development is working steadfastly to improve New York's business climate, support new investments in our economy and drive private sector job growth. The decision by Norampac to build a new facility in Niagara Falls is just another example that New York is truly 'Open for Business.' I commend the numerous state and local partners who contributed to the advancement of this project, and congratulate Norampac on its continuing success in the region.
Construction will last until 2013 and allow the creation of more than 300 jobs, mostly in the region, between 2011 and 2013.
Mayor Paul Dyster remarked: "This is an especially gratifying groundbreaking because it marks yet another progress milestone for this City, which is clearly on a journey of renewal. Greenpac is not just a bigger paper mill, Greenpac is using the latest technology and showcasing the fact that Niagara Falls, New York is where the public sector and the private sector can work together to deliver high-wage manufacturing jobs; 500 jobs in total, just as we did at the turn of the last century, only this time it will be environmentally sound and more sustainable. I see Greenpac as a leading indicator for the future, and applaud Greenpac for their faith in Niagara".
Project Description The Greenpac mill will be constructed for a total cost of US$430 million on a property adjacent to an existing Norampac facility in Niagara Falls, NY. Greenpac will manufacture a light weight linerboard, made with 100% recycled fibers, on a single machine having a width of 328 inches (8.33 meters) with an annual production capacity of 540,000 short tons. This machine will be one of the largest in North America.
Moreover, the building and the machinery will be designed for optimal energy efficiency and many operations will be automated. Also, process water will be treated and reused in order to reduce consumption as much as possible, and the state of the art management system for recycled fibres will have a positive effect on the environmental performance of the mill.
The paper machine will be manufactured by Metso, Voith will provide the stock preparation equipment and anaerobic effluent treatment plant, and Siemens will provide the power and control technology. MiniMill Technologies, Inc. (MMT) has been chosen to support Norampac and its partners in the project management.
The new mill will have a total surface area of 300,000 square feet and will allow the creation of 108 jobs in the New York State at the start-up, planned for the summer of 2013.
Norampac owns 37 facilities manufacturing and converting corrugated products and folding cartons in North America, including one medium containerboard mill and three corrugated conversion plants in the State of New York.
About Cascades Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibers. The Company employs close to 11,000 employees, who work in more than 100 units located in North America and Europe. Its management philosophy, its more than 45 years of experience in recycling and its continued efforts in research and development are strengths that enable Cascades to create new products for its customers. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.
SOURCE CASCADES INC.
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