Cascades Considers New $300 Million Linerboard Mill at Norampac Site in New York

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Researched by Industrial Info Resources (Sugar Land, Texas)--Cascades Incorporated (Kingsey Falls, Quebec) (TSX:CAS), through its operating division Norampac, is looking to the future with plans to build a new linerboard mill adjacent to a company-owned mill in Niagara Falls, New York.

Cascades' Norampac is a single-machine mill that currently produces approximately 800 tons per day of corrugating medium and has the ability to generate 13 megawatts (MW) of electricity. The expansion plans call for a new 1,200-ton-per-day lightweight linerboard machine, a recycled-fiber processing unit, a warehouse, and the demolition of buildings, which will require asbestos abatement and a new rail crossing.

In advancing the project, Cascades hopes to secure partnerships with energy providers to supply low-cost thermal energy and an additional 10 MW of power to the mill.

Cascades' corporate engineering group will oversee the project from development through startup and will coordinate the services of equipment suppliers as well as engineering and construction contractors. Pending approval from Cascades' board, the company could commence construction on the 30-month project by the middle of 2010.

Cascades has announced that its capital plans for 2009 could potentially reach $100 million.

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