Cascades Acquires Virginia Plant to Produce Recycled Linerboard

Canadian sustainable packaging and tissue products manufacture, Cascades, has acquired White Birch’s Bear Island paper plant in Virginia for $34.2 million.

Canadian sustainable packaging and tissue products manufacture, Cascades, has acquired White Birch’s Bear Island paper plant in Virginia for $34.2 million.

The company said that it will reconfigure the newsprint paper machine at the facility to enable the production of recycled lightweight linerboard.

White Birch will temporarily operate the site as a newsprint mill under a 27-month lease, following which Cascades will convert the equipment at the plant, with an estimated investment of $275-$300 million.

Once the conversion is completed, the new machine is anticipated to have a production capacity of 400,000 tonnes per year.

“In addition to the paper machine that is particularly well suited for conversion, the Bear Island site is strategically located for raw material sourcing and logistics, ” said Cascades CEO Mario Plourde

“This project is directly in line with the goals of our strategic plan which include, among other things, investing in our core sectors of packaging and tissue through modernisation, and expanding our geographical footprint,” he continued.

In addition to the paper machine the Bear Island site is strategically located for raw material sourcing and logistics.

“Based on the success of our Greenpac Mill, we expect this to be a highly competitive facility that will significantly contribute to the success of our containerboard operations by supporting our geographic expansion in the US market, in addition to generating solid returns for our shareholders.”

The company expects to commence production in 2021.

With the increased production capacity from the new facility, the company aims to expand its market share.