Cascades Announces Acquisition of the Bear Island, Virginia Newsprint Mill and Plans to Convert Facility to Recycled Containerboard Production
Cascades Inc. announces the acquisition of the White Birch, Bear Island manufacturing facility in Virginia , for a cash consideration of US$34.2 million . The newsprint paper machine presently located on the site will be reconfigured to produce high quality recycled lightweight linerboard and medium for the North American market. During the period prior to the conversion, White Birch will temporarily operate the site as a newsprint mill, under a 27-month lease. The new machine is expected to have an annual production capacity of 400,000 tons and construction costs on a per ton basis that are competitive with similar conversion projects. As presently contemplated, the conversion would require an estimated investment of between US$275 and US$300 million , with production expected to begin in 2021. Details of the project will be announced when plans are finalized and approved by the Board of Directors, which is expected in the course of 2019. Click Read More below for additional information.