(Reuters) - Cascades Inc said its Norampac division will shut down a plant that makes corrugated packaging containers in Le Gardeur, Quebec in a move to trim costs and boost profits.
The Canadian packaging and paper products maker said 50 employees will be affected by the closing that is slated to be completed by the end of the year. The Le Gardeur plant has annual revenue of $8 million.
“Demand in the Canadian corrugated industry has been affected by unfavorable economic conditions for the past few years. It is imperative that we make adjustments to take into account this new reality,” Norampac Chief Executive Marc-André Dépin said in a statement.
Last month, Cascades said its Norampac division will sell an underperforming containerboard mill in Burnaby, British Colombia to counter rising labor and fiber costs.
The company’s shares were trading up 3 percent C$4.29 on Wednesday on Toronto Stock Exchange.
Reporting by Ankur Banerjee in Bangalore; Editing by Viraj Nair